What is the current price of bond

Assignment Help Financial Management
Reference no: EM131942936

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 25 years to maturity, and a coupon rate of 7.1 percent paid annually.

If the yield to maturity is 8.2 percent, what is the current price of the bond?

Reference no: EM131942936

Questions Cloud

Degree of financial leverage under each of three plans : What is the degree of financial leverage under each of the three plans? compute earnings per share (EPS) before the expansion and under the two alternatives.
What was your total real return on this investment : The inflation rate over the past year was 3.7 percent. What was your total real return on this investment?
What are depository institutions : What are depository Institutions? What is their purpose or function? Why do we have different types of them? What are they?
Annual cost of the trade credit : What is the effective, or equivalent, annual cost of the trade credit?
What is the current price of bond : Even though most corporate bonds in the United States make coupon payments semiannually, what is the current price of the bond?
What is relationship in liquidity and security portfolio : In terms of asset management what is the relationship between Liquidity, Reserve and the Security Portfolio.
What is the continuously compounded interest rate : What is the continuously compounded interest rate? What is the effective annual rate?
Interest only amortizing mortgage : What is the total amount paid (principal and interest) on a $300,000 15/15 interest only amortizing mortgage.
What is the monthly payment on standard : What is the monthly payment on a standard 30 year fixed rate commercial loan at 6.75% with a balloon payment after 10 years and LTV of 78% on $750,000 property.

Reviews

Write a Review

Financial Management Questions & Answers

  The modified internal rate of return assumes

The modified internal rate of return assumes

  Use annual compounding of interest

A US Treasury STRIP with a face value of $1000 has 9 years to maturity. Use annual compounding of interest.

  Why are money markets needed in addition to banks

Why are money markets needed in addition to banks? What cost advantages do the money markets provide?

  Common stockholders have a residual claim to income

Common stockholders have a residual claim to income. Bondholders may force a corporation into bankruptcy for failure to make interest payments. Common stockholders are legally entitled to some dividend.

  What will be dividend payout ratio

Puckett Products is planning for $2.5 million in capital expenditures next year. Puckett's target capital structure consists of 60% debt and 40% equity. If net income next year is $1 million and Puckett follows a residual distribution policy with all..

  Option pricing-replicating portfolio

What is the appropriate price of the 1 year call option of XYZ corp with a strike price of $110 using replicating portfolio approach?

  Find the revised annual payment

Seven years go, Jean took out a 20- year 30000 loan at 8% effective on which she was making annual payments, with the first payment due one year after the loan was taken out. the lender is satisfied with earning 8% effective. the lender is satisfied ..

  Sec in investigating claims of financial or investment fraud

What are the responsibilities and/or obligations of the SEC in investigating claims of financial or investment fraud?

  Uses accounting values rather than financial values

Which one of the following statements concerning bond ratings is correct? Which one of these methods uses accounting values rather than financial values? Which one of the following transactions occurs in the primary market?

  Call option value using the two-state stock price model

calculate your estimate of the the call option's value using the two-state stock price model.

  Separate entity and will need to raise new funds

Although the company has a decent supply of liquid assets (cash), it is treating this expansion project as a separate entity and will need to raise new funds.

  Reorganizes through the bankruptcy process

A firm in financial distress that reorganizes through the bankruptcy process:

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