User Account

All Pages

What is the present worth now of one bond

Assignment Help Finance Basics
Reference no: EM13881862

Best Buy issued collateral bonds 4 years ago that have a face value of $20,000 each and a coupon rate of 8% per year, payable semiannually. If the bond maturity date is 20 years from the date they were issued and the interest rate in the marketplace is now 12% per year, compounded semiannually, what is the present worth (now) of one bond?

Reference no: EM13881862

Questions Cloud

What is present worth of the dividend savings to epwu rate : If the bond dividend rate would have been 4% per year, payable quarterly, with a bond maturity date 18 years after issuance, what is the present worth of the dividend savings to EPWU rate payers?
Safest conditions are achieved by lowest temperature : (a) The safest conditions are achieved by the lowest temperature and pressure in the flash vessel. (b) Vapor flow to downstream equipment can cause a hazardous situation.
Spill response and cleanup problems associated with water : Explain the spill response and cleanup problems associated with water-soluble liquids
How would you go about estimating the unknowns : Regression through the origin. Consider the following regression through the origin: Yi = βˆ2 X2i + βˆ3 X3i + uˆ i      - How would you go about estimating the unknowns?
What is the present worth now of one bond : If the bond maturity date is 20 years from the date they were issued and the interest rate in the marketplace is now 12% per year, compounded semiannually, what is the present worth (now) of one bond?
Degree of reaction-definition of flow coefficient : Degree of Reaction - Definition of flow coefficient, and the velocity diagram.
Describe the basic strategy in riding the yield curve : Describe the basic strategy in riding the yield curve. Can you ride the yield curve if the yield curve is downward sloping with short term rates above long term rates?
Differences between threshold limit value and permissible : What are the differences between threshold limit value and permissible exposure limit?
What is the face value of a municipal bond that matures : What is the face value of a municipal bond that matures in 20 years and has a bond coupon rate of 6% per year with semiannual payments of $900?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd