What is the current market value of the firms debt

Assignment Help Financial Management

Reference no: EM131592549

Kidder Corporations balance sheet shows an historical book value for long term debt ( bonds, at par) of $23,500,000. The bonds have a 6.4% coupon rate, payable semiannually and a par value of 1.000. They mature exactly 10 years from today. The yield to maturity is 9.55%, so the bonds now sell below par. What is the current market value of the firms debt? Please round your answer 2 decimal places.

Reference no: EM131592549

Questions Cloud

Questions and interviews in process analysis and modelling : Compare and contrast Ethnographic Studies and the use of Questions and Interviews in process analysis and modelling.

Organize the articles based on common information : You will choose 3 articles from the literature search completed previously in course for reference list and organize the articles based on common information.

Indicate manner in which deferred taxes should be presented : (Three Differences, Classify Deferred Taxes) At December 31, 2013, Belmont Company had a net deferred tax liability of $375,000.

What is the intensity of supplier power-high : What is the intensity of rivalry-high, medium, or low-within the smartphone manufacturing industry? Explain your answer using the Rivalry Strategy Tool.

What is the current market value of the firms debt : Kidder Corporations balance sheet shows an historical book value for long term debt ( bonds, at par) of $23,500,000. What is current market value of firms debt?

What is the osi model : What is the OSI model and why is it important in understanding networking?

Market interest rate for bonds of similar risk and maturity : Moody Corporation's bonds have a 15-year maturity, If the going market interest rate for bonds of similar risk and maturity is 5.95%

Where do you see failures in corporate governance : What are the essential details of the event, and what do you see as the causes of the crisis and/or negative impact to society?

What factors do you think a funding agency : Why might a grantee need a budget adjustment. What factors do you think a funding agency will consider in making these determinations

User Account

All Pages