What is the price today for a thompson tarps bond

Reference no: EM13281248

1)Petty Productions Inc. recently issued 30-year $1,000 face value, 12% annual coupon bonds. The market discount rate for this bond is only 7%. What is the current price of this bond?

2)Five years ago, Thompson Tarps Inc. issued twenty-five-year 10% annual coupon bonds with a $1,000 face value each. Since then, interest rates in general have risen and the yield to maturity on the Thompson bonds is now 12%. Given this information, what is the price today for a Thompson Tarps bond?

3)Phillips Fine Fixtures Inc. wishes to issue new bonds but is uncertain how the market would set the yield to maturity. The bonds would be 20-year, 7% annual coupon bonds with a $1,000 par value. Fisher has determined that these bonds would sell for $1,050 each. What is the yield to maturity for these bonds?

Reference no: EM13281248

Questions Cloud

Determine the final volume assuming ideal gas behavior : A gas is confined to one side of a rigid insulated container divided by a partition. The other side is initially evacuated. The following is known for the initial state of the gas: P1 = 3 bar, T1 = 380 K and V1 = 0.025 m3.

Explain the thermal insulation around the turbine : If a breakdown of the thermal insulation around the turbine allows a heat loss of 60 kJ per kg of stream, and the exiting steam is at 150oC and 0.3 MPa, what will be the power developed by the turbine if the inlet steam conditions and flow rate ar..

What is the yield or return on this preferred stock : This preferred stock is currently selling for $56.46 per share. What is the yield or return (r) on this preferred stock?

Calculate average value of current i during life of battery : A standard D cell flashlight battery is connected to a load of 3 ohms. After 6 hr of intermittent use the load voltage drops from an initial 1.5 V to a final useful voltage of 0.9 V. (a) Calculate the internal resistance of the battery at the load ..

What is the price today for a thompson tarps bond : Five years ago, Thompson Tarps Inc. issued twenty-five-year 10% annual coupon bonds with a $1,000 face value each. Since then, interest rates in general have risen and the yield to maturity on the Thompson bonds is now 12%. Given this information,..

Define inlet steam conditions and flow rate are unchanged : If a breakdown of the thermal insulation around the turbine allows a heat loss of 60 kJ per kg of stream, and the exiting steam is at 150oC and 0.3 MPa, what will be the power developed by the turbine if the inlet steam conditions and flow rate ar..

What is the current through the water layer : The legend that Benjamin Franklin flew a kite as a storm approached is only a legend - he was neither stupid nor suicidal. what is the current through the water layer

Discuss these changes or initiatives : The Affordable Care Act (ACA) has made a huge impact on healthcare delivery system and especially in regard to financial management of healthcare organizations and delivery of high quality healthcare services.

Find the voltage drop through which the proton moves : A proton initially at rest is accelerated by a uniform electric field. Find the voltage drop through which the proton moves

User Account

All Pages