What is the market value of the bond

Assignment Help Financial Management
Reference no: EM131597253

A ten-year bond, with par value equals $1,000, pays 10% annually. If similar bonds are currently yielding 9% annually, what is the market value of the bond? Use semi-annual analysis.

$1,365.40

$1,015.40

$1,065.40

$1,215.40

Reference no: EM131597253

Questions Cloud

Order to have enough money on hand in retirement : what would he need to deposit now in order to have enough money on hand in retirement? (Present Value)
Carol plans to visit japan next week and wishes to convert : Carol plans to visit Japan next week and wishes to convert $1,000 U.S. into yen to cover her travel expenses.
Compute the current price of the bonds : Compute the current price of the bonds if the present yield to maturity is 7%, 8%, & 13%.
Track the changes in the euro-usd exchange rate : Based on your own Internet research, track the changes in the Euro/USD exchange rate since the Euro was launched in 2002.
What is the market value of the bond : what is the market value of the bond? Use semi-annual analysis.
How much additional capital must the company raise : how much additional capital must the company raise in order to support the 20% increase in sales?
What is target fixed assets and sales ratio : Inman industries has $2.5 million in sales and $0.8 million in fixed assets. What is Inman’s target fixed assets/sales ratio?
Bond value and time long dash-constant required returns : Pecos Manufacturing has just issued a 15?-year, 13?% coupon interest? rate, ?what happens to the bond value as time moves toward? maturity?
The term additional funds needed is generally defined : The term “additional funds needed” (AFN), is generally defined as:

Reviews

Write a Review

Financial Management Questions & Answers

  What is mary effective annual rate

Mary purchased 100 shares of Sweet Pea Co. stock at a price of $48.66 six months ago. She sold all stocks today for $46.11. During that period the stock paid dividends of $1.45 per share. What is Mary’s effective annual rate?

  Responsible for developing marketing strategy

Imagine that you are the marketing manager responsible for developing marketing strategy for a bicycle company. Propose the strategic marketing process you will use, being sure to name the stages, the activities included in the stages, and stage-spec..

  What is the standard deviation of the portfolio

Security F has an expected return of 10 percent and a standard deviation of 26 percent per year. Security G has an expected return of 17 percent and a standard deviation of 58 percent per year. We form a portfolio composed of 30 percent of security F..

  Prepare a statement of unrestricted revenues

Prepare a Statement of Activities using the format presented and prepare a Statement of Unrestricted Revenues, Expenses, and Other Changes in Unrestricted Net Assets together with a Statement of Changes in Net assets.

  Designed new lottery scratch-off game

XYZ company has designed a new lottery scratch-off game. Calculate the expected value of the game.

  Use them to increase inventory

Its initial inventory level is $412,000, and it will raise funds as additional notes payable and use them to increase inventory.

  Annualized interest-calculate the return on stock

Suppose that you buy a stock for $48 by paying $25 and borrowing the remaining $23 from a brokerage firm at 8 percent annualized interest. The stock pays an annual dividend of $0.80 per share, and after one year, you are able to sell it for $65. Calc..

  Christinas expenses were paid by her insurance policy

Christina Haley of San Marcos, Texas, age 61, recently suffered a severe stroke. She was in intensive care for 12 days and was hospitalized for 18 more days. How much of Christina's expenses were paid by her insurance policy? How much did Christina p..

  What is the sum of the market value of NWC

What is the sum of the market value of NWC and the market value of fixed assets?

  Calculate the present value of annual payments

Calculate the present value of annual payments of $3,000 per year for ten years at 8%:

  What is the effective rate for option two per year

To purchase a house for $80,000, a new couple has $12,000 available for down payment. They are considering two options: Option 1: get a new standard mortgage with 10% APR interest compounded monthly for a 30-year term Option 2: What is the effective ..

  What is the expected rate of return for a stock

What is the expected rate of return for a stock that is expected to pay $1 dividend next year and is currently selling for $10. The price of the stock next year is expected to be $11.87 by next year. Write your answer as a decimal (i.e. do not change..

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