What is the current market price of the bonds

Assignment Help Finance Basics
Reference no: EM131856418

Fresh Food, Inc. sold an issue of 15-year $1,000 par value bonds to the public. The bonds have a 10.83 percent coupon rate and pay interest annually. The current market rate of interest on the Fresh Food, Inc. bonds is 10.71 percent. What is the current market price of the bonds?

Reference no: EM131856418

Questions Cloud

Compute the value of this stock with required return : Compute the value of this stock with a required return of 11.2 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Are civil liberties seriously threatened by the government : Are civil liberties seriously threatened by the government's efforts to prevent domestic terrorism?
What is the yield to call of a 23-year to maturity : What is the yield to call of a 23-year to maturity bond that pays a coupon rate of 8.80 percent per year, has a $1,000 par value
How is networking necessary for building a successful career : How is networking necessary for building a successful career? Identify the networking strategy you think is the most effective for the job search.
What is the current market price of the bonds : The current market rate of interest on the Fresh Food, Inc. bonds is 10.71 percent. What is the current market price of the bonds?
Planning to invest in bank : Your aunt is planning to invest in a bank CD that will pay 6.50 percent interest semi-annually. how much will she have at the end of four years?
Earn an annual rate of return : How much should you pay for the stock, if you want to earn an annual rate of return of 9.5% on this investment?
What is the yield to maturity of a 28-year bond : What is the yield to maturity of a 28-year bond that pays a coupon rate of 9.37 percent per year, has a $1,000 par value
Write a reflective paper about the executive order : An overview of the Executive Order - fully explain it, what it means, what it does, and what impact it has in the United States.

Reviews

Write a Review

Finance Basics Questions & Answers

  What will be the projected balance in retained earnings

If sales are expected to increase by 25% next year, what will be the projected balance in retained earnings using the percent of sales method?

  Briefly describe the historical role of savings in the us

Briefly describe the historical role of savings in United States. Explain mechanic of issuing Treasury bills, indicating how price of a new issue is determined.

  Suppose the quick towing company purchases a new tow truck

suppose the quick towing company purchases a new tow truck. the old truck had a book value of 1000 and was sold for

  Allison boone had been practicing medicine for seven years

allison boone had been practicing medicine for seven years. her specialty was neurology. she had received her bachelors

  Explain what is the corresponding implied forward rate

According to the pure expectations theory of interest rates, how much do you expect to pay for a one-year STRIPS on February 15, 2011? What is the corresponding implied forward rate

  An emergency that lasted an hour and patients who had

a family doctor sees patients for an average of 10 minutes each. there is an additional 5 minutes of paperwork for

  Affect of inflation on exchange rate

How does inflation affect the country's exchange rate? How is the equilibrium exchange rate determined and what factors affect it?

  How the process of interest rate determination affected

Select at least two additional economic indicators such as inflation, unemployment rates, retail sales and the yield curve to make and explain your prediction.

  How would you incorporate political risk into the capital

How would you incorporate political risk into the capital budgeting process of foreign investment projects?

  Anticipated cash outflow and expects

Holistic Holidays Limited has an employment contract with Loretta Bloom, its newly hired CEO. The contract requires a lump sum payment of $3.84 million.

  Find the company current stock price

A corporation's last dividend was $1. Its dividend growth rate is expected to be constant at 15 percent for two years, after which dividends are expected to grow at a rate of 10% forever. The required return is 12%.

  Method versus the internal rate of return method

What are the strengths and weaknesses of the net present value method versus the internal rate of return method?

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