What is the price of a bond with a face value

Assignment Help Finance Basics
Reference no: EM132614100

What is the price of a bond with a face value of $100 000, paying 5% p.a. coupon with 12 years to maturity and the market yield is 6.5% p.a.?

Reference no: EM132614100

Questions Cloud

Nominal rate of interest-mortgage trust bank : What nominal rate of interest must Mortgage Trust Bank offer to its clients?
Explain the concept of core competences : Explain the differences between corporate level strategy, business level strategy and functional level strategy in the F Company
Describe differences between elastic and inelastic traffic : Describe the differences between elastic and inelastic traffic on a network and provide several examples of each from your own experience.
Complete the Bank Reconciliation for November : Using the following information to complete the Bank Reconciliation for November: Deposits of March 30 and 31 not yet recorded by bank $5,200
What is the price of a bond with a face value : What is the price of a bond with a face value of $100 000, paying 5% p.a. coupon with 12 years to maturity and the market yield is 6.5% p.a.?
Discuss efforts and initiatives in enhancing public sector : According to Blagescu and de Las Casas (2005), Bovens, (2007), Discuss efforts and initiatives in enhancing public sector accountability in the country.
What is realized rate of return : What is your realized rate of return if the stock's price is actually $42 at year's end?
Discussing advantages of deploying a wlan in an organization : Assume you are the IT manager for an organization tasked with evaluating whether or not to deploy internal wireless access for employees.
Operating with high operating leverage : If your company is operating with high operating leverage, how would you deal with this situation to minimize risk and maximize profit

Reviews

Write a Review

Finance Basics Questions & Answers

  Daniel sold the bond

Daniel purchased a bond on July 1, 2015, at par of $10,000 plus accrued interest of $300. On December 31, 2015, Daniel collected the $600 interest for the year. On January 1, 2016, Daniel sold the bond for $10,200.

  The wall street journal reports that the current rate

The Wall Street Journal reports that the current rate on 10-year Treasury bonds is 7.85 percent, on 20-year Treasury bonds is 8.45 percent, and on a 20-year corporate bond issued by MHM Corp. is 9.95 percent. Assume that the maturity risk premium is ..

  What is the break-even ebit

What is the break-even EBIT? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

  Compute current price of bond-katie pairy fruits inc

Katie Pairy Fruits Inc. has a $3,200 24-year bond outstanding with a nominal yield of 17 percent (coupon equals 17% × $3,200 = $544 per year).

  Evaluating dividend policy on wealth maximization

Can you please tell me what is Evaluating Dividend Policy on Wealth Maximization in businesses?

  What is the average investment in accounts receivable

What is the average investment in accounts receivable as shown on the balance sheet?

  Determining the average annual return

She can save $5,000 per year, and you advise her to invest it in securities which you expect to provide an average annual return of 10 percent. If she follows your advice, how much money would she have at age 60?

  After-tax weighted average cost of capital

If the firm is financed with $120,000,000 of common shares (market value) and $80,000,000 of debt, then what is the after-tax weighted average cost of capital for Droz's if it is subject to a 35 percent marginal tax rate?

  Constant dividend payout ratio-constant debt-equity ratio

Assume the firm has a constant dividend payout ratio and a constant debt-equity ratio. What is the sustainable growth rate the firm can achieve

  Drop below the maintenance margin

If the stock price increases above a certain level, P, the percentage margin would drop below the maintenance margin of 25% and you will get a margin call

  What is the aftertax cost of debt

Morgantown Tool has 7.5 percent semiannual bonds outstanding that mature in 13 years. The current price quote is 101.3 percent of par and the tax rate is 35 percent.What is the aftertax cost of debt?

  Temporary workers to lower employment costs

The manager's bonus is based on profitability.

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