What is the current price of the bond

Assignment Help Financial Management

Reference no: EM131553368

A corporation issued a 10 years coupon with coupon rate of 8% and face value of $1,000. the coupons are paid semiannually. a. when the bond was underwritten, it was priced with a yield to maturity of 8.02%. What is the issuing price? b.Now 6 months has passed and the interest rate environment has changed suppose now the yield to maturity on the bond has dropped to 6.5%. what is the current price of the bond, assuming that the first coupon has just been paid?

Reference no: EM131553368

Questions Cloud

What would be your hedged annual cash flow in dollars : using the information above what would be your hedged annual cash flow in dollars. What is a way you could hedge your exposure if you thought $ would weaken?

What was the company year-end debt-assets ratio : DEBT RATIO Last year K. Billingsworth & Co. had earnings per share of $4 and dividends per share of $2. Total retained earnings increased by $12 million.

Analysts are forecasting that stock is predicted to return : Analysts are forecasting that the stock is predicted to return 15.7%. Should the stock be included in the portfolio?

Minneapolis health system has bonds outstanding : Minneapolis Health System has bonds outstanding that have four years remaining to maturity, What is yield to maturity on issue if current market price is $829?

What is the current price of the bond : When the bond was underwritten, it was priced with a yield to maturity of 8.02%. What is the issuing price? what is the current price of the bond,

Discuss the macrs property : Production of the implants will require $1,650,000 in net working capital to start and additional net working capital investments each year equal to 10 percent.

Presented a proposal for project : You are presented a proposal for a project. What is the NPV of this project if your WACC is 14.5%?

Analyze the profitability : Use the information provided to analyze the profitability of SDHS Co using the following ratios:

The subject property with reference to landscaping : What adjustment should be made to the price of site 1 to make it equal to site 2, the subject property, with reference to landscaping?

User Account

All Pages