What is the current price of the bond

Assignment Help Financial Management
Reference no: EM131912997

12 years ago, Mini Max Inc. issued 30 year to maturity zero-coupon bonds with a par value of $1,000. Now the bond has a yield to maturity of 6.51 percent, compounded semi-annually.

What is the current price of the bond?

Reference no: EM131912997

Questions Cloud

Calculate the unit sales and dollar sales to attain target : Calculate the unit sales and the dollar sales to attain the target profit of $500,000 using the formulas demonstrated in the text.
At what level of expected sales would it make sense : If expected sales are revised based on the first year's performance, when would it make sense to abandon the investment?
Regression equation for the depression screening : If the regression equation for the depression screening example was Y=0.40 + 10(X), then a score of 20 on the screening test (X)
Compute the net present value of the machine : Mayberry Textiles Inc. is considering the purchase of a new machine which has an initial cost of $400,000. Compute the net present value of the machine.
What is the current price of the bond : 12 years ago, Mini Max Inc. issued 30 year to maturity zero-coupon bonds with a par value of $1,000.
Estimating the average salaries of police officers : A researcher is interested in estimating the average salaries of police officers in a large city. She wants to be 95% confident that her estimate is correct.
Calculate the budgeted manufacturing overhead rate : Calculate the budgeted manufacturing overhead rate. Calculate the manufacturing overhead allocated during 2014. Calculate the amount of under- or overall
What is the cost of the restriction in terms of sharpes : What is the utility loss to the investor (A = 2.6) given his new complete portfolio?What is the cost of the restriction in terms of Sharpe's measure?
Average number of empty seats : Give a 90% confidence interval for the average number of empty seats. Use the sample standard deviation rounded to 3 decimal places.

Reviews

Write a Review

Financial Management Questions & Answers

  Find the ebit indifference level associated

Find the EBIT indifference level associated with the two financing plans.

  The amount of money that you deposited today

You discover that at the end of one year you have $ 10,540 in the account. What was X, that is, the amount of money that you deposited today?

  Determine the companys wacc by computing

Merrill Lynch Limited has the following information and a tax rate of 30 percent. . Debt 2,000, 6 percent coupon bonds outstanding, $1,000 par value, 12 years to maturity, selling for 95 percent of par, the bonds make semiannual payments Common stock..

  Compute the present value of payments made in years

Given a 5 percent interest rate, compute the present value of payments made in years 1, 2, 3, and 4 of $1,250, $1,450, $1,450, and $1,750.

  Initial cost of the project including the flotation costs

Joe's Legal Services is raising capital to open a new law office in northern Illinois. The project has an initial start up cost of $1,448,289. The firm maintains a debt-equity ratio of 0.50 and has a flotation cost of debt of 6.8 percent and a flotat..

  Calculate amount of interest and separately- principal paid

You plan to purchase a $175,000 house using a 15 year mortgage obtained from a local bank. The mortgage rate offered to you is 7.75%. You will make a down payment of 20% of the purchase price.  Calculate the amount of interest and, separately, princi..

  What are the net cash flows for each year of this project

A new line of clothing is expected to result in sales of $5 million in the first year of a project. What are the net cash flows for each year of this project?

  Issuing zero-coupon bond-using the semiannual convention

Delagold Corporation is issuing a zero-coupon bond that will have a maturity of fifty years. The bond's par value is $1,000, and the current yield on similar bonds is 7.5%. What is the expected price of this bond, using the semiannual convention?

  What is the one-year interest rate expected one year

Suppose we observe the following rates: 1R1 = 3%, 1R2 = 5%. If the unbiased expectations theory of the term structure of interest rates holds, what is the 1-year interest rate expected one year from now, E(2r1)?

  Major differences between fixed and variable costs

Briefly state the major differences between fixed and variable costs and discuss what you consider to be the most challenging part of determining cost types and why

  Inventory assuming that all sales are on credit

The Fischer Sport Store has assets of $525,300, costs of goods sold of $305,000, accounts receivable of $57,600, and inventory of $109,100. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit?

  Corporation has two different bonds currently outstanding

The Metchosin Corporation has two different bonds currently outstanding. Bond M has a face value of $40,000 and matures in 20 years.

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