User Account

All Pages

What is the beginning price of the bond

Assignment Help Corporate Finance
Reference no: EM13342593

Identify the most accurate answer from the 4 proposed answers listed below the question.

You buy an 8% annual coupon bond from CARRIS Inc. that has a 25 year maturity and a required return of 12%. The par value is $1,000. You sell the bond five years later when the required return is 10%. What is the beginning price of the bond when it is issued (to the nearest dollar)?

1) $686

2) $1,364

3) $1,000

4) $872

Reference no: EM13342593

Questions Cloud

What is the ending value of the bond : You buy an 8% annual coupon bond from CARRIS Inc. that has a 25 year maturity and a required return of 12%. The par value is $1,000. You sell the bond five years later when the required return is 10%. What is the ending value of the bond when ..
What capacitive reactance does the capacitor have : A certain capacitor in a circuit has a capacitive reactance of 30.89 ohms when the frequency is 177 Hz. What capacitive reactance does the capacitor have
Describe the reaction flask after washing it with water : Describe and explain how each of the following experimental errors or variations might affect your results. a) you failed to dry the reaction flask after washing it with water.
What must be the amplitude of the wave : A sinusoidal transverse wave travels on a string. The string has length 7.95m and mass 6.45g. what must be the amplitude of the wave
What is the beginning price of the bond : You buy an 8% annual coupon bond from CARRIS Inc. that has a 25 year maturity and a required return of 12%. The par value is $1,000. You sell the bond five years later when the required return is 10%. What is the beginning price of the bond wh..
Explain how much energy is released from steam : How much energy (in kilojoules) is released when 14.0 g of steam at 129.0 C is condensed to give liquid water at 78.0C? The heat of vaporization of liquid water is 40.67 kJ/mol, and the molar heat capacity is 75.3 J/ K mol for the liquid and 33.6 ..
What is the average speed of a piece of the slinky : A wave pulse travels down a slinky. The mass of the slinky is m = 0.86 kg and is initially stretched to a length L = 7.8 m. What is the average speed of a piece of the slinky
Determine the energy stored in the field : A 0.800 m long solenoid is formed by wrapping 740 turns of wire around a hollow cylinder with a radius of 0.160 m. calculate the energy stored in the field
Expectation hypothesis : Expectation Hypothesis

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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