What is the present value of the bond

Assignment Help Accounting Basics
Reference no: EM133110776

Question - A 10-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 6.6% with semiannual payment. The reported yield to maturity is 6.8% (please adjust the coupon rate and discount rate for semi annual payment bond). What is the present value of the bond?

Reference no: EM133110776

Questions Cloud

What is the cost of its ending inventory : There were no additional purchases or sales during the remainder of the year. If Alphabet Company uses the LIFO method, what is the cost of its ending inventory
Explain how change was assessed and evaluated : When implementing a change, it is critical to evaluate the change utilizing metrics. Explain how the change was assessed and evaluated.
Debt-equity ratio : Firm X reports a cost of debt at 7.00 percent while its cost of levered equity is 17.0 percent. The firm has a 0.45 debt-equity ratio. What is its WACC if there
Strategic planning is process or mechanism : Strategic planning is the process or mechanism used by healthcare organizations to analyze new regulations, policies, and procedures
What is the present value of the bond : A 10-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 6.6% with semiannual payment. What is the present value of the bond
Determine the resulting estimate of the option price : The time-t price of a nondividend paying stock following the Black-Scholes framework is s(t). You are given:
Calculate the beta of this portfolio of stocks : Calculate the beta of this portfolio of stocks using the current betas for each stock as given on Yahoo Finance or CNBC. What does this portfolio beta measure
Determine the value of the levered firm : An unlevered firm has a value of $800 million. An otherwise identical but levered firm has $60 million in debt at a 5% interest rate, which is its pre-tax cost
What were the equivalent units for conversion costs : Baker Corporation uses the weighted-average method in its process costing system. What were the equivalent units for conversion costs

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