What is the current price of the bond

Assignment Help Finance Basics
Reference no: EM131890641

12 years ago, Blue Lake Corp. issued 30 year to maturity zero-coupon bonds with a par value of $5,000. The current interest rate on this type of bond is 13.39 percent, compounded annually. What is the current price of the bond?

Reference no: EM131890641

Questions Cloud

What would be the future value of deposits : What would be the future value of his deposits at the end of the 7 year?
Identify two ways in which the interview went well : Identify two ways in which the interview did not go well. Explain what steps the investigator might have taken to better prepare for the interview.
Realized rate of return from investment : If you sell the bond at the current price of 1,051, what is your realized rate of return from this investment?
What is present value of growth opportunities : The company plans to reinvest 25% of its earnings at 20%. If the cost of equity is 11%, what is the present value of growth opportunities?
What is the current price of the bond : The current interest rate on this type of bond is 13.39 percent, compounded annually. What is the current price of the bond?
What issues arise based upon the districts demographics : Given your results, and your previous district analysis research, what's your platform? Choose at least three issue stands to develop.
What is the expected return on portfolio : You place 30% of your money in A and 70% in B. What is the expected return on your portfolio? Justify your answer
Percentage of company capital structure consists of debt : Hook Industries's capital structure consists solely of debt and common equity. What percentage of the company's capital structure consists of debt?
Determining the risk premium : What are the various risk elements that are considered when determining the risk premium.

Reviews

Write a Review

Finance Basics Questions & Answers

  Find the optimum value of capital budgeting technique what

how does fifo and lifo cost of goods pricing techniques tie in to the difference between the definition of profit from

  What is a supply chain

What is a supply chain? What are some potential benefits of managing the supply chain? What are the key factors that help an organization decide what type of framework they should use to develop the supply chain?

  Calculate the t value for independent groups for the

calculate the t value for independent groups for the following data using the formula presented in the module. check

  What is the annual operating cash flow from the project

You have been hired as a capital budgeting analyst by a sporting goods firm that manufactures athletic shoes and has captured 10% of the overall shoe market.

  Random samples of transactions within a database

Internal auditors sometimes check random samples of transactions within a database. Suppose that in a particular set of transactions, 2% contain

  What will the firms market value

What will the firm's market value be after the announcement of the new debt issue?

  What amount should jody deduct as an itemized deduction

What amount should Jody deduct as an itemized deduction for state income taxes on her current year tax return'?

  Identifying different strategic groups

Identifying different strategic groups with a note on their characteristics in your map.

  Development of the secondary mortgage market

What is the historical development of the secondary mortgage market and the need that led to tis development?

  Compute the allocation rates

1. Compute the allocation rates for each of the activity drivers listed. 2. Allocate the overhead costs to Brushes and Combs  using activity-based costing.

  What will the monthly payment be

Since TVM is an important concept in finance, we'll go over several problems for this week discussions. Let's say that somebody takes out a car loan. The loan is for $20,000, monthly payments are made for five years, and the annual interest rate i..

  Company cost of capital percent

A project has initial outlay of $2791. It has a single payoff at the end of year 4 of $8578. what is the profitability index (PI) of the project, if the company's cost of capital is 6.06 percent.

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