What is the current market price of this bond

Assignment Help Financial Management

Reference no: EM131012752

A corporate bond, paying $65 interest at the end of each year for 6 years, has a face value of $1,000. If market rates on newly issued similarly rated corporate bonds are now 7.5%, what is the current market price of this bond?

Reference no: EM131012752

Questions Cloud

The percentage change in the price of these bonds : Both Bond Bill and Bond Ted have 11 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 3 years to maturity, whereas Bond Ted has 20 years to maturity. If interest rates suddenly rise by 2 percent, what is the percen..

Determine the value of the weight q of the block on right : If P=11lb and W=155lb how do i find the weight Q of the right block? Thanks 4b. Determine the value of the weight Q of the block on the right. Pulley C and pulley D each weigh an amount P, and the weight of the block on the left is W. The pulleys ..

How much will you owe after two years : A loan shark lends you $80 at 2% compound interest per week (this is a weekly, not an annual rate). (Round your answers to the nearest dollar.) (a) How much will you owe after 2 years?

Use relevant examples : Using an example of a top Brand Licensing company like 'Bradford Licensing' compose an article on business licensing. Use relevant examples and cit your work.

What is the current market price of this bond : A corporate bond, paying $65 interest at the end of each year for 6 years, has a face value of $1,000. If market rates on newly issued similarly rated corporate bonds are now 7.5%, what is the current market price of this bond?

The cash flows in an expansion project are different : The cash flows in an expansion project are different from those in a replacement project. In an expansion project, the cash flows from the old asset

Discuss the major contents of the fund financial statements : Discuss the major contents of the fund financial statements and government wide financial statements. Address why those statements are necessary in the government annual report.

What is the present value of an investment : What is the present value of an investment that promises to pay you $1,000 in five years if you can earn 6 percent interest compounded annually? Please show your work, which includes formula and steps to show how you got this answer.

Concerning the definiteness of an offer : 1-Which of the following statements is true concerning the definiteness of an offer? A-The offeree's terms must be clear enough to provide a court with a basis for granting a remedy. B-Price terms may not be left open in valid offers for ..

User Account

All Pages