What is the current price of the bond

Assignment Help Finance Basics
Reference no: EM132648724

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 6.7 percent paid annually.

If the yield to maturity is 7.8 percent, what is the current price of the bond?

Reference no: EM132648724

Questions Cloud

Describe potential benefits and challenges to training : The Department of Defense has committed considerable national resources to the establishment of a robust LVC training environment. Provide your assessment.
Make a statement of cash flow will be necessary to : 6000 in order to adjust the companies net income to a cash basis using the direct method on the statement of cash flow's it will be necessary to
Find the present value of option : You have just won first prize in a quantitative competition.
How would the discontinuation of product line b affect : Product line B appears unprofitable, and management is considering discontinuing the line. How would the discontinuation of Product line B affect net income?
What is the current price of the bond : If the yield to maturity is 7.8 percent, what is the current price of the bond?
What is the faas approach to system safety : What is the FAA's approach to system safety and air carrier certification? Watch the FAA TV: Flight Standards Service Overview video (10:00) and find out.
Describe the advantages of a retrospective rating plan : Describe the advantages of a Retrospective Rating Plan and which benefit can impact the insured the most and why?
What is the hpr : At the end of the period the shares are worth $192, and you earn 1.6% dividend yield. What is the HPR?
Define recommendations for how to correct what you found : A detailed report to your boss: In this report be sure to provide your operating assumptions and recommendations for how to correct what you found.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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