What is the current market value of bond

Assignment Help Accounting Basics
Reference no: EM132685347

Problem 1) An investor purchases a 5-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interest is 5%, what is the current market value of the bond?

A. $923
B. $968
C. $1,000
D. $1,309

Reference no: EM132685347

Questions Cloud

How are the steps of sars-cov-2 infection : How are the steps of SARS-CoV-2 infection different from lytic infection of a DNA virus? How are they similar?
Evaluate the equity of due process in the united states : Evaluate the equity of due process in the United States. The United States judicial systems are based on the Constitution of the United States guaranteeing.
Explain at least three reasons some cells : Explain at least three reasons some cells may not use aerobic respiration even though it produces more energy than other forms of energy transformation.
How do calculate the issue price of the bonds : Interest payments are made semi-annually. The market rate for this type of bond is 7%. Using present value tables, calculate the issue price of the bonds.
What is the current market value of bond : 5-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interest is 5%, what is the current market value of bond
Advise on a proposal to open an international campus : Select and research a range of information sources, and ensure you read widely about the issue of protecting information privacy in cross border enterprise
What is meant by the term enteric : 1. What is meant by the term "enteric"? Why are enteric pathogens of concern in the medical setting?
What is the return on shareholders equity : If the firm has an asset turnover ratio of 2.40, what is the profit margin? (do not round intermediate calculations. Round the final answer to 1 decimal pace)
What sort of variables do you need to consider : Do you think every student who inhaled virus particles would become ill? What sort of variables do you need to consider to answer these questions?

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