What is the bond price after issue

Assignment Help Accounting Basics
Reference no: EM133119710

Question - Pinder Co issues a 30-year 8% p.a. semi-annual coupon bond with a face value of $1,000. 5 years after issue, the effective annual bond yield is 12%. What is the bond price 5 years after issue?

Reference no: EM133119710

Questions Cloud

Capital asset pricing model : Do interest rates and risk affect a stock's price in the Capital Asset Pricing Model (CAPM)? Why?
What is the value of the loan : Valuing a loan. A company borrowed $10 million for five years from Atlantic Bank. The company pays Atlantic Bank a fixed annual rate of 8 percent and must pay b
Discuss the pros and cons of this asset class : ABC Ltd is an Indian company for 35 years and is thinking of raising capital from outside the country. Discuss the pros and cons of this asset class
What is the principal amount of the lease obligation : The present value of 1 at 8% for 5 periods is 0.68 and at 10% for 5 periods is 0.62. On December 31, 2021, what is the principal amount of the lease obligation
What is the bond price after issue : Pinder Co issues a 30-year 8% p.a. semi-annual coupon bond with a face value of $1,000. What is the bond price after issue
What is the EAC for machine A : Variable costs for this machine are 30 percent of sales and fixed costs are $126,000 per year. What is the EAC for machine A
Prepare the budgetary entries : Prepare the budgetary entries for 2023 assuming that the bonds were scheduled to be issued on January 2
What is growth company wacc : Growth Company's current share price is $19.95, and it is expected to pay a $1.15 dividend per share next year. After that, the firm's dividends are expected to
Advantages and disadvantages equity financing : There are two main categories of financing: equity and debt. Historically, the hospital industry has financed approximately 50% of total assets with equity and

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture 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!

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