What is the market value of the bond

Assignment Help Finance Basics
Reference no: EM131936538

A ten-year bond, with par value equals $1,000, pays 8% annually. If similar bonds are currently yielding 7% annually, what is the market value of the bond? Use semi-annual analysis.

Reference no: EM131936538

Questions Cloud

Compute the realized rate of return : Compute the realized rate of return, I/Y, for an investor who purchased the bond WHEN it was issued and who surrenders it today at the CALL price.
Find the value of your retirement plan : Assume that you contribute $380 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $760 per month.
Difference in your total payments for option : What is the difference in your total payments for each option? Is there a reason why you should not finance for more than 15 years? Give your reasons.
What is cash flow under current capital structure : What is her cash flow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent?
What is the market value of the bond : If similar bonds are currently yielding 7% annually, what is the market value of the bond? Use semi-annual analysis.
How much money will you have in your savings account : If you invest $21,627 today at an interest rate of 6.32 percent, compounded daily, how much money will you have in your savings account in 15 years?
What tax rate is the market assuming as marginal tax rate : What tax rate is the market assuming as marginal tax rate? Describe a naive investment strategy to take advantage of this information.
Calculate the sales price of this bond should : The appropriate interest factors used to calculate the sales price of this bond should be in the TVM tables under 2% for 20 periods.
Describing benefits of Enterprise Information Architecture : Report for the Australian Federal Government describing the benefits of an Enterprise Information Architecture Reference Architecture

Reviews

Write a Review

Finance Basics Questions & Answers

  What is a pn junction

What is a PN junction? Draw its circuit symbol. What is the convention followed in writing its symbol? Illustrate its characteristic and make it self explanatory.

  Lease a set of golf clubs from pings ltd

You want to lease a set of golf clubs from Pings Ltd. The lease contract is in the form of 36 equal monthly payments at a  stated annual interest rate of 9.2 percent, compounded monthly. Since the clubs cost $2,300 retail, Pings wants the PV of the l..

  Review article of your choice related to world of finance

In this assignment, you will review one article of your choice related to the world of finance. You can review articles on any financial topic of your choice.

  What dividend yield do investors obtain on the trust units

A major bank has established a Real Estate Investment Trust (REIT) that issues trust units (which are essentially equivalent to ordinary shares) to investors.

  What is your maximum potential financial loss

When purchasing an option, what is your maximum potential financial loss?

  Solving queries by using time value of money concepts

Evaluate the time it takes to save $10,000 if you know you can save $300 per month in a bank account paying 10 percent interest.

  Determine which project will you fund

Suppose your hurdle rate is 15 percent. The first project is a seven year project with an expected IRR of 15.2% and the second project is a five year project with an IRR 15.3 percent.

  Fundamental differences between u.s. gaap and ifrs

The 2008 Form 20-F published by Unilever, which uses IFRS, notes that during 2008 assets were written down by 246 million euros to market value for damaged, obsolete, and lost inventories.

  What are the merits and demerits of these two methods

Explain the difference between accounting rate of return and internal rate of return. What are the merits and demerits of these two methods?

  Define forward and futures and option agreements

What are derivatives? Define forward, futures, and option agreements. - What are the underlying instruments in these agreements?

  Prepare the journal entries that were recorded by seasaw

How much pension liability should be recorded on Seasaw's balance sheet as of the end of the current year?

  What is most you would be willing to pay for alfa growth inc

If your required return on this stock is 12.96 percent, what is the most you would be willing to pay for Alfa Growth, Inc. common stock now?

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