User Account

All Pages

What is the carrying value of the bond at investment date

Assignment Help Accounting Basics
Reference no: EM132809366

Problem 1: According to the Capital Asset Pricing Model (CAPM), the relevant risk of a security is its

a. Market Risk

b. Total risk

c. Non-diversifiable risk

d. Systematic risk

Problem 2: Lissandra, an investor, invested in a 5-year bond with 100 shares at Php1,000 par value and with a coupon rate of 11% that is paid semi-annually. The effective rate of the bond is 8%. What is the carrying value of the bond at investment date? (Use 8 decimal places for the present value factor)

a. Php125,718.88

b. Php112,166.34

c. Php113,950.74

d. Php130,747.64

Reference no: EM132809366

Questions Cloud

What is the value of the stock of freecs company : Preferred stocks of Php 100 @ 10,000 par, 75% of total common shares, which is 100,000 shares, is outstanding. What is the value of the stock of Freecs company
Should unilever stockholders endorse its sustainability plan : Should Unilever's stockholders endorse its sustainability plan? Why or why not?
What is the current price of a share of stock : What is the current price of a share of stock when the current dividend is P4.75, the growth rate is 7%, and the investor's required rate of return is 11%?
What do you understand by total returns for work : What different parameters do they opt for deciding on pay rise? What other methods do you think the employer should adopt in deciding pay revision?
What is the carrying value of the bond at investment date : A coupon rate of 11% that is paid semi-annually. The effective rate of the bond is 8%. What is the carrying value of the bond at investment date?
Key components of a health care system : What are the key components of a health care system? What distinguishes a complex adaptive health care system?
What total shares of common stock that a firm is allowed : What Total shares of common stock that a firm is allowed to issue that was registered in Securities and Exchange commission is called
Organizations compensation plan : You have been hired as an HR Consultant to determine the level of satisfaction of employees with their organization's compensation plan.
What happens when a bond expected cash flows are discounted : What happens when a bond's expected cash flows are discounted at a rate lower than the bond's coupon rate? What market risk premium is the

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

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