What is the price of bond with coupon rate

Assignment Help Financial Management
Reference no: EM131308256

What is the price of a bond with a coupon rate of 4.50%, a yield to maturity of 4.25%, a future value of $1000, semi-annual coupon payments, and 9 years until maturity?

Reference no: EM131308256

Questions Cloud

What was your rate of return on the stock : Similar to problem 11: you have $60,000 to invest. You put $30,000 in GAP stocks (beta of 1.8); $15,000 in Chesapeake Utilities (beta of .8); $15,000 in Anheuser-Busch (beta of .6). What is you portfolio beta? You own 1 share of Martha Stewart Omnime..
What is the beta of your stock portfolio : ou expect to receive a $1.00 dividend the next time your stock pays dividends. If your required rate of return (RRR) on the “dog” is 20% and the growth rate is 2%, what should this stock sell for?  You have $80,000 to invest in stocks. You select 2 s..
Required rate of return on stock with a beta : What would be your required rate of return on a stock with a beta of 2, given the following (Ch 5): 6 mo CD = 2% 90 day T-Bill = 3% 10 year T-Note = 5% Prime = 7% Average return on the stock market = 10%
What was their federal tax bill : Your company has sales of $425,000; cost of goods sold = $200,000. The company paid interest of $25,000 on a loan and received $20,000 in dividends from GE. They paid $55,750 in common stock dividends and $10,000 in preferred stock dividends. What wa..
What is the price of bond with coupon rate : What is the price of a bond with a coupon rate of 4.50%, a yield to maturity of 4.25%, a future value of $1000, semi-annual coupon payments, and 9 years until maturity?
Number of floral deliveries its patients receive each day : A hospital records the number of floral deliveries its patients receive each day. For a two-week period, the records show 15, 27, 26, 24, 18, 21, 26, 19, 15, 28, 25, 26, 17, 23 Use exponential smoothing with a smoothing constant of .4 to forecast the..
Determine the irr of the investment : For a new product, an initial investment of $500,000 is required. The revenues and costs for each of the four years of the product’s life are. The expected residual value of the equipment is 10% of its first cost of $500,000 at the end of the five ye..
Financial manager has when managing working capital : What are the goals a financial manager has when managing working capital? What does the manager have under their control to effect the goals? What forces are working against each other in optimizing the goals of the manager?
What is the gross return of the riskfree bond : There are two states of nature (s1, s2) with equal probabilities. Suppose there is a representative agent who is endowed with 1 unit of consumption today, and (2, 1) tomorrow. The agent has power.  What are the risk-neutral probabilities? What is the..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the intrinsic value of stock

Deployment Specialists pays a current (annual) dividend of $1 and is expected to grow at 24% for two years and then at 5% thereafter. If the required return for Deployment Specialists is 9.5%, what is the intrinsic value of Deployment Specialists sto..

  How might credit card companies keep their cardholders

How might credit card companies keep their cardholders in debt for a long time? What payment do the credit card companies expect your friend to make so that he never pays down the debt?

  What is the break-even EBIT

Rise Against Corporation is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 170,000 shares of stock outstanding.  What is the break-even EBIT?

  What is their current yield

Heath Foods's bonds have 9 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 7%. They pay interest annually and have a 9% coupon rate. What is their current yield? Round your answer to two decimal places.

  Speculate on a possible rise in stock price

Alan would like to speculate on a possible rise in stock price of Garmin. The current stock price of Garmin is $42. Alan expects that in one year the stock price of Garmin will be either $48 (up move) or $36 (down move). How many shares of Garmin doe..

  Explain what is ssp''s net investment required in the fmc

What is SSP's net investment required in the FMC? Assume that both pieces of equipment are being depreciated to a zero salvage value?

  Issued convertible subordinated debenture

Maple Aircraft has issued a convertible subordinated debenture at 6.00% interest due 2020. The conversion price is $64.00 and the debenture is callable at 104.00% of face value. If the conversion ratio were 48.25, what would be the conversion price?

  Absorb the risk by plowing back the capital surplus

If a firm that CANNOT issue new equity grows at a rate higher than SGR, which of the following MUST be true? They can absorb the risk by plowing back the Capital Surplus. Trick question: a firm cannot grow at a rate higher than SGR

  What is the current yield or cost of the preferred stock

Wallace Container Company issued $100 par value preferred stock 10 years ago. The stock provided a 5 percent yield at the time of issue. The preferred stock is now selling for $60. What is the current yield or cost of the preferred stock?

  Calculate the annual premium if sandra changes her mind

After finding Sandra's single premium in Exercise, calculate the annual premium if Sandra changes her mind about paying a single amount.

  Use the present worth-annual worth and capital iced cost

A job can be done with Machine A that costs $12,500 and ha annual end-of-year maintenance costs of $5000; it salvage value after g years is $2,000. Or the job can be done with Machine B, which cost $15,000 and has end-of year maintenance costs of $4,..

  Explain the difference between fixed and variable costs

Explain the difference between fixed and variable costs for a healthcare organization. Provide and discuss at least one example of a fixed cost in health care and one example of a variable cost in health care

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