What is the present value of the bond

Assignment Help Finance Basics
Reference no: EM132694422

What is the present value of the bond if you assume the following information for an existing bond that provides annual coupon payments:

  • Par value = $5,000
  • Coupon rate = 3.25%
  • Maturity = 3 years
  • Required rate of return by investors = 3.45%

Reference no: EM132694422

Questions Cloud

Calculate the required rate of return on a security : The risk-free rate is 6% and the expected rate of return on the market portfolio is 13%.
Explain announcement of the acquisition : Why did the share price increase following the announcement of the acquisition?
Expected return and standard deviation of the portfolio : a) What is the rate of return on the portfolio in each scenario? b) What are the expected return and standard deviation of the portfolio?
How would you respond to Nolan and Stacy if you were Rita : Nolan is the accounts payable clerk, and Stacy is the cashier. How would you respond to Nolan and Stacy if you were Rita
What is the present value of the bond : What is the present value of the bond if you assume the following information for an existing bond that provides annual coupon payments:
Develop a stress management training session for employees : Imagine you are a new employee in a HR department. Your first task is to develop a stress management training session for the employees.
Does the budget format selected make any difference : Does the budget format selected make any difference in preparing, adopting, implementing or auditing the budget? What about public understanding of the budget?
What is the lower bound of the call value : Suppose that for a European optionc0r K Between 1 and 1.2Between 1.4 and 1.6Between 1.6 and 1.8
Discuss whether Dave is performing in a professional manner : Dave's clients will call him at the office during regular working hours. Discuss whether Dave is performing in a professional manner

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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