What is the least you could pay to acquire bond

Assignment Help Financial Management
Reference no: EM13875171

A Treasury issue is quoted at 107:17 bid and 107:31 ask. Assume a face value of $1,000. What is the least you could pay to acquire a bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Reference no: EM13875171

Questions Cloud

What is the yield to maturity of this bond : A Treasury bond with the longest maturity (30 years) has an ask price quoted at 99:01. The coupon rate is 4.30 percent, paid semi annually. What is the yield to maturity of this bond?
Analyze these transactions on a work sheet similar : Sally Golfo, a registered nurse, opens a business called Sally Elder Care. Golfo plans to care for the elderly herself in a facility that she will rent.
How does the strength of other economies outside : How does the strength of other economies outside of the U.S. affect your organization? Based on your research, recommend changes in your organization's competitive strategies or supply chain.
Three year insurance policy by paying : On July 1, Friler Company purchased a three year insurance policy by paying $5,400.
What is the least you could pay to acquire bond : A Treasury issue is quoted at 107:17 bid and 107:31 ask. Assume a face value of $1,000. What is the least you could pay to acquire a bond?
What motivates policymakers to stimulate the economy : What motivates policymakers to stimulate the economy or contract the economy? Based on your research, what does the Federal Reserve say about its policy goals? What does the Federal Reserve say about the strength of the economy?
Considering new office computer system : The L Company is considering a new office computer system. They can purchase the system for $21,000. If the computer system is purchased, it will be depreciated straight line over a five year life to a zero salvage value. L Company's before tax cost ..
Local acceleration of gravity : If the density of the water is 62.4 lb/ft3, what is the mass of water stored in the tower, in lb, when the tank is full? What is the weight, in lbf, of the water if the local acceleration of gravity is 32.1 ft/s2?
Explained using aggregate supply and aggregate demand curves : Macropoland has a natural rate of unemployment at about 4.5% and its long run average of inflation over time has been about 2%. This means that no matter what happens in the short-run, the long-run averages of unemployment and inflation will always b..

Reviews

Write a Review

Financial Management Questions & Answers

  Market value-weighted indexes are true market portfolio

Market value-weighted indexes are true market portfolio indexes; they represent movements in the market. Dow Jones 30 Industrial Average is an example of Market value-weighted index. It is possible to get some of the benefits of international diversi..

  Calculate the copy department costs allocated to sales

Triton company's copy department, which does almost all of the photocopying for the sales department and the administrative department, budgets the following costs for the year, based on the expected activity of copies:

  About the huge cash reserves the companies accumulate

Shareholders of some companies occasionally complain about the huge cash reserves the companies accumulate. And, sometimes (Wal-Mart in 2007, Apple in 2013) firms indeed satisfy investor concerns and announce plans to distribute substantial portions ..

  About the sales increase

Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,300,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..

  Differences between low-severity-high-frequency lines

In the context of Property and Liability insurance, explain the differences between low-severity, high-frequency lines and high-severity, low-frequency lines. For which of these lines will insurance companies charge a higher premium?

  Calculate the return on invested capital for each firm

Firms HL and LL are identical except for their leverage ratios and the interest rates they pay on debt. Each has $15 million in invested capital, has $2.25 million of EBIT, and is in the 40% federal-plus-state tax bracket. Calculate the rate of retur..

  In an efficient market-the price of a security

In an efficient market, the price of a security will:

  In the mid-eighties the toro company launched a promotion

in the mid-eighties the toro company launched a promotion in which snow blower purchasers could refund a portion of

  One area in which you are assisting is in the setup of

one area in which you are assisting is in the setup of business development in central and south america for navigation

  Net operating income and net selling price model

A small shopping center is expected to produce net operating income of $23,880 in year 1. You expect NOI to increase by 4 percent per year over an expected holding period of seven years. Property value is expected to increase by 3 percent per year. T..

  Present value of the expected yearly cash flows

Hinkle Inc. expects the first three years of a proposed project would have cash flows of $320,000 a year. If Hinkle uses a discount rate of 13%, about what is the present value of the expected yearly cash flows?

  About the leveraging effect

Which of the following is true about the leveraging effect?

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