What is the value of a bond that matures in 5 years

Assignment Help Finance Basics
Reference no: EM13273970

What is the value of a bond that matures in 5 years, has an annual coupon payment of $110, and a par value of $2,000? Assume a required rate of return of 8.69%. A. $1,876.99 B. $938.50 C. $1,891.36 D. $1,749.83

Reference no: EM13273970

Questions Cloud

What is the relevant cost of new preferred stock : What is the relevant cost of new preferred stock? A. 10.00% B. 7.37% C. 10.53% D. 15.00% E. 7.00%
Explain mass of nacl required : PbO + NaCl + H2O ---> Pb(OH)Cl + NaOH How many grams of PbO and how many grams of NaCl would be required to produce 10.0g of Pb(OH)Cl? a) Mass of PbO required = ? b) Mass of NaCl required = ?
Explain what is the molecular formula of each compound : What is the molecular formula of each compound. (Type your answer using the format C6H12O6 for C6H12O6 and use the same order of the elements as in the empirical formulas.
How much should you be willing to pay for this stock : If you require a 14 percent rate of return, how much should you be willing to pay for this stock? A. $56.46 B. $83.65 C. $89.75 D. $62.57
What is the value of a bond that matures in 5 years : What is the value of a bond that matures in 5 years, has an annual coupon payment of $110, and a par value of $2,000? Assume a required rate of return of 8.69%. A. $1,876.99 B. $938.50 C. $1,891.36 D. $1,749.83
Market efficiency implies which of the following : Market efficiency implies which of the following? A. market value = intrinsic value B. book value = market value C. liquidation value = book value D. book value = intrinsic value.
Explain what is the molecular formula of each compound : What is the molecular formula of each compound. (Type your answer using the format C6H12O6 for C6H12O6 and use the same order of the elements as in the empirical formulas.
What is the value of gm for each of the 2 transistors : If vid is 20-mV peak-to-peak sine wave applied in a balanced manner but superimposed on VCM = 0.5 V, what is the value that VDD must have to ensure saturation-mode operation for Q1 and Q2 at all times. Assume Vt = 0.5 V.
How many grams of cuso4 5h2o are needed to solution : How many grams of CuSO4 5H2O are needed to prepare 100 ml of a .15 m solution CuSO4

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the sharpe ratio of the complete portfolio

What is the standard deviation of returns for the mutual fund? Is it higher or lower than the standard deviation found in part 2? Why?

  What are the portfolio weights for a portfolio

What are the portfolio weights for a portfolio that has 132 shares of Stock A that sell for $42 per share and 112 shares of Stock B that sell for $32 per share? (Round your answers to 4 decimal places. (e.g., 32.1616))

  Long-term debt and leasing cases

Find out the initial investment if NC issue new bonds to retire the old bonds. Suppose that NC will have to issue enough bonds to cover both the principle and the call premium associated with retiring the old issue.

  Annuity payments from insurance policy

Sarah is age 73 and has a great deal of difficulty living independently, as she suffers from severe arthritis.How much income must Sarah report if she elects the annuity? How much income would Sarah have to report if her nursing home bills amounted..

  Calculate the weighted-average cost of capital

A company current balance sheet is as follows: calculate the firm's weighted-average cost of capital at various combinations of debt and equity, given the following data?

  Determine the portfolios required return

A portfolio manager has a $10 million portfolio, which consists of $1 million invested in ten separate stocks. The portfolio beta is 1.2. The risk-free rate is 5 percent and the market risk premium is 6 percent.

  Use appropriate method to solve the problem

In 1880 five aboriginal trackers were each promised the equivalent of hundred Australian dollars for helping to capture the notorious outlaw Ned Kelley.

  Present value of all future earnings

You are running a hot internet company. Analysts predict that its earnings will grow at 30% for each year for the next five years. After that, as competition rises, earnings growth is expected to slow to 2% per year and continue at that level fore..

  Use the free cash flow approach to calculate the value

The appropriate market capitalization rate for the unleveraged cash flow is 14% per year, and the firm currently has debt of $4 million outstanding. Use the free cash flow approach to calculate the value of the firm and the firm's equity.

  Explain what is the internal rate of return of a project

What is the internal rate of return of a project that has an initial outlay of $150,000 and net cash flows of $40,000 for 5 years?

  Calculation of net present value

Calculation of net present Value of Maple Media is considering a proposal to enter a new line of business

  Determine the value of portfolio today

Suppose you invested $10,000 eight years ago. The arithmetic average is 10.9 percent and the geometric average return is 10.5%. What is the value of your portfolio today

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