What is the price of the bond right now

Assignment Help Finance Basics
Reference no: EM131928499

The Apr coupon rate on a bond is 6 percent (compounded quarterly) and yet the yield to maturity on the bond is 10 percent (compounded quarterly). The face value of the bond is 1000 dollar and will mature in 7 years. What is the price of the bond right now?

Reference no: EM131928499

Questions Cloud

What was the sales price per share of original stock issue : What was the sales price per share of the original stock issue? How many shares of stock did the corporation acquire in Entry 2?
Write the current fair value of the european call : The stock's volatility (sigma) is A4 per annum, and the risk-free interest rate is A5 percent per annum, continuously compounded.
Percent of risk-weighted assets : What is the bank's Tier 1 capital in percent of risk-weighted assets, to the nearest 0.01%? (E.g., if your answer is 5.753%, record it as 5.75.)
Find the internal rate of return : Internal rate of return For the project shown in the following? table,? calculate the internal rate of return ?(IRR).
What is the price of the bond right now : The face value of the bond is 1000 dollar and will mature in 7 years. What is the price of the bond right now?
Market interest rate for aaa-rated : Assume that the coupon payments are made semi-annually (at the end of each 6 months), and that the current market interest rate
What should be the price of the option based on replication : In addition we assume that (i) CISCO will not pay any dividend and (ii) there are no other derivatives that are trading including other call or put options.
Gross rent multiplier-market price : 1. Debt coverage ratio - net operating income/ annual debt service 2. Gross rent multiplier -Market price/ potential gross income
What is the yield of ibm stock : It currently (2017) pays $1.40 per share quarterly dividend (the dividend was $0.50 per share in 2008).

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!

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