What is the market value for the government bonds

Assignment Help Financial Management

Reference no: EM131020216

Which of the following investment alternatives would provide the greatest ending wealth for your investment if you are thinking of opening a savings account? Record the return alternative with the highest EAR. (Rounded to two decimal places).

a) 7.5 % compounded daily

b) 7.75% compounded semi-annually

c) 7.50 % compounded quarterly

d) 7.75 % compounded quarterly

e) 7.25 % compounded daily

Government of St Vincent and the Grenadines bonds pay semiannual interest of $ 75. They mature in 10 years and have a par value of $1000. The market rate of interest is 7 %. What is the market value for the Government bonds?

Citicorp issued 10 - year bonds 2 years ago at a coupon rate of 8 percent. The bonds make semiannual payments. If these bonds currently sell for 110 percent of par value, what is the Yield to Maturity?

Reference no: EM131020216

Questions Cloud

Which deal is cheaper : A car company is offering a choice of deals. You can receive $2,000 cash back on the purchase or a 2.6 percent APR, 3-year loan. The price of the car is $22,000 and you could obtain a 3-year loan from your credit union, at 6.6 percent APR. Which deal..

What would be the pr ice of the bond if the yield : Expert Security Inc. has 9 percent coupon bonds on the market with five (5 ) years left until maturity. These bonds make annual payments. If the yield to maturity on t he bond is 8 percent, what is the current price of the bond? What would be the pr ..

What is the current price of the bond : American Airlines Corp. has bonds on the market with 10 years to ma turity, a yield to maturity of 9 percent and a coupon rate of 9 percent. If these bonds make quarterly coupon payments, what is the current price of the bond?

How much would it be willing to lend the business owner : A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $3,500 per month for the next three years and then $2,500 per month for two years after that. If the bank is charging customers 11.00 percent APR, ..

What is the market value for the government bonds : Which of the following investment alternatives would provide the greatest ending wealth for your investment if you are thinking of opening a savings account? Record the return alternative with the highest EAR. Government of St Vincent and the Grenadi..

Runs a small manufacturing operation : Phillips Industries runs a small manufacturing operation. For this fiscal year, it expects real net cash flows of $190,000. Phillips is an ongoing operation, but it expects competitive pressures to erode its real net cash flows at 4 percent per year ..

Find the future value of an ordinary annuity if payments : Find the future value of an ordinary annuity if payments are made in the amount R and interest is compounded as given. Then determine how much of this value is from contributions and how much is from interest. The future value of the ordinary annuity..

What is the capital gain or loss on your bond : You own a bond with the following features: 9 years to maturity, face value of $1000, coupon rate of 2% (annual coupons) and yield to maturity of 1.1%. Just after you purchase the bond, the yield to maturity rises to 5.4%. What is the capital gain or..

What is the price and bond equivalent yield : A Treasury bill that settles on May 18, 2012, pays $100,000 on August 21, 2012. Assuming a discount rate of 3.23 percent, what is the price and bond equivalent yield? Use Excel to answer this question.

User Account

All Pages