User Account

All Pages

What is the price of the bond

Assignment Help Finance Basics
Reference no: EM132785599

1. A 6-year, $1000 face value bond makes annual payments and has a coupon rate of 11.2 percent. If the current yield on the bond is 10.7 percent, what is the bond's price? Answer: 1,046.73

2. Suppose that a year from now the bond sells at a yield to maturity of 11.2 percent. What is the price of the bond? Enter your answer rounded to two decimal places. Answer : 1000

3. What is your rate of return if you purchase the bond for $1,046.73, hold it for a year, and then sell it for $1,000? Enter your answer as percentage rounded to decimal places. Do not enter the percentage sign.

Answer question 3 please

Reference no: EM132785599

Questions Cloud

How will impact the employee tax situation : The TD1 form is used by employees to claim, Explain who might claim these tax credits and how this will impact the employee's tax situation.
How much did allie pay for each share last year : Last year, Allie bought some shares in a new company, If the total rate of return on this investment was 7.3%, how much did Allie pay for each share last year?
Prepares adjusting entries monthly : New Energy Consultants prepares adjusting entries monthly. Based on an analysis of the unadjusted trial balance at January 31, 2020
What is the book value of the firm : The founder of Alchemy Products Inc. discovered a way to turn gold into lead and patented this new technology. He then formed a corporation and invested $100,00
What is the price of the bond : A 6-year, $1000 face value bond makes annual payments and has a coupon rate of 11.2 percent. If the current yield on the bond is 10.7 percent
How should the transaction price be allocated : Crane Company manufactures equipment. How should the transaction price of $1,000,000 be allocated among the service obligations?
What are earnings before interest and taxes : Sheryl's Shipping had sales last year of $12,500. The cost of goods sold was $7,000, general and administrative expenses were $1,500, interest expenses
Create a Presentation on Strategic Brand Management : Create a Presentation on Strategic Brand Management. Company - Fonterra co-operative group limited. Analysis of brand challenges and opportunities
What is the total impact of changes : What is the total impact of these changes on the difference between profits and cash flow?

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