What is market value of the bond

Assignment Help Financial Management
Reference no: EM131461912

A ten-year bond, with par value equals $1000, pays 7% annually. If similar bonds are currently yielding 8% annually, what is the market value of the bond? Use semi-annual analysis.

Reference no: EM131461912

Questions Cloud

Profit margin must firm achieve in order to meet growth rate : What profit margin must the firm achieve in order to meet its growth rate goal?
What is the yield on the debt : Lewis, Schultz, and Nobel Development Corp. has an after-tax cost of debt of 5%. With a tax rate of 30%, what is the yield on the debt?
What is exchange rate risk that jack is taking by engaging : Jack is a foreign exchange trader for a bank in New York. What is the exchange rate risk that Jack is taking by engaging in CIA?
Compute price of the bonds based on semiannual analysis : You are called in as a financial analyst to appraise the bonds of Olsen’s Clothing Stores. Compute the price of the bonds based on semiannual analysis.
What is market value of the bond : A ten-year bond, with par value equals $1000, pays 7% annually. If similar bonds are currently yielding 8% annually, what is the market value of the bond?
Calculate the operating cash flow for year one : Calculate the operating cash flow for Year 1.
The purpose of this iLab is to create Access Reports : The purpose of this iLab is to create Access Reports. After a report is created, the student will sort the fields in different ways.
Price of the bonds increase between now and maturity : By what percent will the price of the bonds increase between now and maturity?
Cash-flow assumptions with respect to periodic discounting : What are the cash-flow assumptions with respect to (a) periodic discounting and year-end cash flows,

Reviews

Write a Review

Financial Management Questions & Answers

  What is your best estimate of the company cost of equity

Suppose Pat, Ltd. just issued a dividend of $2.50 per share on its common stock. The company’s dividends have been growing at a rate of 5%. If the stock currently sells for $65, what is your best estimate of the company’s cost of equity?

  Annualized yield to maturity for risk-free zero coupon bond

Robbie Barrow just purchased a risk-free US Treasury note having 3 years to maturity and an annual coupon rate of 7.0 percent. Unlike standard US Treasury notes, the coupon/interest payments for this Treasury note are made once each year. determine t..

  Capital account balance at the beginning of the tax year

Assume the same facts as in Problem 47, and assume that Suz-Anna prepares the capital account rollforward on the partners’ Schedules K–1 on a tax basis. What is Suzy’s capital account balance at the beginning of the tax year? What is Suzy’s capital a..

  What is the effective annual rate on this loan

You want to buy a new sports coupe for $79,500, and the finance office at the dealership has quoted you an APR of 5.8 percent for a 60-month loan to buy the car. What will your Monthly payments be? What is the effective annual rate on this loan?

  What is the after-tax cost of debt for this firm

You are analyzing the after-tax cost of debt for a firm. You know that the firm’s 12-year maturity, 10.75 percent semiannual coupon bonds are selling at a price of $814.61. If these bonds are the only debt outstanding for the firm. What is the curren..

  Net advantage or disadvantage of re-working the keyboards

The Manassas Company has 55 obsolete keyboards that are carried in inventory at a cost of $9,600. If these keyboards are upgraded at a cost of $7,800 they could be sold for $19,100. Alternatively, the keyboards could be sold "as is" for $7,400. What ..

  Make monthly payments

Suppose you are considering buying a new car. You are going to make monthly payments (at the end of each month) on a loan of $33,000 for five years. If the annual percentage rate is 7.5% what is your monthly payment? Based on your payment, what is th..

  Compute the new price of the bond

Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 20-year life when issued and the annual interest payment was then 13 percent. Assume that five years later the inflation premium is only 3 percent and is appropri..

  The great renunciation and the enlightened era

After Siddhartha/Buddha left his palace at age 29, the next 6 years were known as what? the Great Renunciation. the Period of Enquiry. the Enlightened Era

  What is the net cash flow of the project each year

H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,670,000. The fixed asset falls into the three-year MACRS class (MACRS Table). The project is estimated to generate $2,340,000 in..

  Find the yields and the durations of the two bonds

Find the yields and the durations of the two bonds

  Received from drug companies for his latest discovery

Dr. Harold Wolf of Medical Research Corporation (MRC) was thrilled with the response he had received from drug companies for his latest discovery, a unique electronic stimulator that reduces the pain from arthritis. Thirty percent of the buyer’s gros..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd