What is the present value of a zero-coupon bond

Assignment Help Financial Management

Reference no: EM13726614

What is the present value of a zero-coupon bond with five years maturity, a nominal value of $1,000 and a discount rate of 6%?

Reference no: EM13726614

Questions Cloud

Issue of preferred stock outstanding : Lane, Inc., has an issue of preferred stock outstanding that pays a $6.55 dividend every year in perpetuity. If this issue currently sells for $91 per share, what is the required return?

What are the weekly earnings for weekly sales : Shoe sales people earn a base salary of $400 a week with a commission of 10% on every sale above $6000 during that week. What are the weekly earnings for weekly sales of $4k and for weekly sales of 10k? SHOW WORK

What is the current dividend per share : Suppose you know that a company’s stock currently sells for $51 per share and the required return on the stock is 11 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it..

What is the required return on the companys stock : Keenan Co. is expected to maintain a constant 4.2 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 6.0 percent, what is the required return on the company’s stock?

What is the present value of a zero-coupon bond : What is the present value of a zero-coupon bond with five years maturity, a nominal value of $1,000 and a discount rate of 6%?

Value of stock according to the dividend discount model : Stock A has an expected dividend of $1.30 payable as of two years from now (i.e. it is not expected to pay any dividends over the first two years). After that, dividends are expected to grow at an annual rate of 1% forever. If the discount rate is 5%..

Calculate the relevant cash flow : Depreciation (of existing machinery): $10,000. Calculate the relevant cash flow for this firm for the year 2014.

What rate of return are you earning on your money : You've been given the opportunity to invest $100,000. In exchange, you will receive quarterly payments of $5,000 for the next 7 years. What rate of return are you earning on your money? (Your answer should be the annual rate of return expressed as a ..

What is your total return on this investment : Suppose you are a U.S. investor who is planning to invest $965,000 in Mexico. Your Mexican investment gains 11.8 percent. If the exchange rate moves from 14.0 pesos per dollar to 14.3 pesos per dollar over the period, what is your total return on thi..

User Account

All Pages