What is the current market price of the bonds-fresh water

Assignment Help Finance Basics
Reference no: EM132465984

Fresh Water, Inc. sold an issue of 18-year $1,000 par value bonds to the public. The bonds have a 7.89 percent coupon rate and pay interest annually. The current market rate of interest on the Fresh Water, Inc. bonds is 11.53 percent. What is the current market price of the bonds?

Reference no: EM132465984

Questions Cloud

Prepare arturos journal entry to record its acquisition : Prepare Arturo's journal entry to record its acquisition of Westmont. (If no ntry is required for a transaction/event, select "No journal ntry required" )
What would you receive in dollars if you sold ars : What would you receive in dollars if you sold ARS 1,000,000 spot? What would it cost you to purchase ARS 15,000,000 forward three months for dollars?
Direct materials price variance-direct materials quantity : XYZ Manufacturing company has been producing cheese for the local market over the last 20 years. Direct materials price variance, Direct materials quantity
Compute the value of pet food company bonds : Compute the value of Pet Food Company bonds if the market interest rate on this type of bond is 8.30 percent
What is the current market price of the bonds-fresh water : Fresh Water, Inc. sold an issue of 18-year $1,000 par value bonds to the public. The bonds have a 7.89 percent coupon rate and pay interest annually.
What is an acceptable range of royalty rates : From the licensor's perspective, what is an acceptable range of royalty rates?Intellectual Asset Return Analysis-Excess Returns Related to Intellectual Property
Difference will reverse and cause deductible : AAA Corporation has one temporary difference at the end of the of 2014. The difference will reverse and cause deductible amounts of $10,000 in 2015 and $20,000
Compute the value of flower valley company bonds : Compute the value of Flower Valley Company bonds if investors' required rate of return is 8.11 percent.
What is the yield to maturity of a 24-year bond : What is the yield to maturity of a 24-year bond that pays a coupon rate of 13.21 percent per year, has a $1,000 par value

Reviews

Write a Review

Finance Basics Questions & Answers

  Specialized training need for employees

Discuss the specialized training need for employees who will be working on electrical equipment. List some of the particular hazards they face working with electricity.

  Find the individuals optimal consumption in each period

Consider a model in which an individual lives only two periods. The individual has diminishing marginal utility of consumption and receives an income of $20,000

  Portfolio beta-required rate of return

An individual has $35.000 invested in a stock with a beta of 0.8 and another $40.000 invested in a stock with a beta of 1.4.  If these are the only two investments in her portfolio, what is her portfolio's beta?

  What is mountaintop relative interest-sensitive gap

Mountaintop Savings Association has interest-sensitive assets of $300 million, interest-sensitive liabilities of $175 million, and total assets of $500 million.

  Which of the following is most accurate with respect to

which of the following is most accurate with respect to delta-normal var?a. the delta-normal method provides accurate

  Yu must use different angle of view that you found from

facts of tapering on unemployment in usayou must use different angle of view that you found from

  Determine expected payment

Determine expected payment

  What is the value of a long position in a one-year futures

1. What is the value of a long position in a one-year futures or forward contract on a non-income paying financial asset with a current price of $100, where Rf is 5% and the contract price is $90? All else equal, what would a call option price t..

  Write a draft email to the sales team at herman miller

Read the email once, revising for content. Make sure that all needed information is included, no unneeded information is included, and the information is presented in a logical sequence.

  Explain relationship between discount rate and present value

Although the payment made on an amortized loan is constant, it can be decomposed into two components. What are the TWO (2) components? Describe the patterns of each component over time.

  Relationships to reduce environmental impact

How can businesses use technology and relationships to reduce their environmental impact?

  Discussing break even analysis and npv break even

We are discussing the break even analysis and the NPV break even. I have this so far and not sure how to calculate the information:

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