What is the maturity of the bond

Assignment Help Accounting Basics
Reference no: EM132961163

Question - Assume that a bond will make payments every six months as shown on the following timeline:

The timeline starts at Period 0 and ends at Period 20. It shows cash flows of $30.00 in each period from Period 1 to Period 19. In Period 20, the cash flow is $1,030.00.

Period 0 1 2 1 9 2 0

Cash flow $30.00 $30.00 $30.00 $1,030.00

a. What is the maturity of the bond (in years)?

b. What is the coupon rate (in percent)?

c. What is the face value?

Reference no: EM132961163

Questions Cloud

Which financial report is often referred to as still picture : Which financial report is often referred to as a still picture of the organization's financial condition? Statement of Financial Condition
Who is responsible for the poor performance for executive : A senior Executive, middle aged was expecting promotion for the past 4 years, which is due for him as he is with the organization from its inception.
What is the rorac of this borrower : Suppose that the risk-adjusted factor (?R)/(1+RL ) and the tax rates are 0.8% and 20% respectively, what is the RORAC of this borrower
Journalize the four summary entries on august : Journalize the four summary entries on August 31 to record each for the month. Refer to the Chart of Accounts for exact wording of account
What is the maturity of the bond : The timeline starts at Period 0 and ends at Period 20. It shows cash flows of $30.00 in each period from Period 1 to Period 19. What is the maturity of the bond
Prepare an annual income statement for kitchen ninja knife : Prepare an annual income statement for the Kitchen Ninja knife series, including supporting calculations, from the information provided.
Estimate the firm cost of equity : Phillip Enterprises Inc. needs to determine its cost of equity capital. Use the following information to estimate the firm's cost of equity
Determine the balance on the job cost sheets for jobs : Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August. At the end of August, Kaye Company had completed Jobs 40 and 42.
How to mitigate the risk of corruption : What are the policies which can be implemented in an organisation to sensitise workers about corruption and how to mitigate the risk of corruption.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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