What is this bond’s payback period? 1

Assignment Help Financial Management

Reference no: EM132069012

1. Dahlia Co. issued $1,000 par value bonds with a 4% coupon rate, convertible into 20 share of Dahlia common stock. If the market price of the bond is $1,100 and the stock is now at $45 per share and pays a $0.50 per share annual dividend. What is this bond’s payback period? 10.00 years 6.67 years 8.41 years 12.28 years

2. A bond has a yield to maturity of 4.5%, a duration of 14 years, and a 20 year maturity. By what percentage will the bond's price change if market interest rates increase by 0.5%? 6.70 percent -6.70 percent 7.66 percent -7.66 percent.

Reference no: EM132069012

Questions Cloud

Bond duration is higher than its time to maturity : For zero coupon bonds, a bond's duration is higher than its time to maturity.

How will the employees be housed : For this homework assignment, you will develop a supporting human resource (HR) plan for an organizational strategy. In a paper of four pages of text.

What is the external financing needed : As with every other firm in its industry, next year’s sales are projected to increase by exactly 10 percent. What is the external financing needed?

Examine the relationship between management and unions : The secret to Wal-Mart's success has long been attributed to its strong culture. Wal-Mart employees are referred to as "Walmartians".

What is this bond’s payback period? 1 : Dahlia Co. issued $1,000 par value bonds with a 4% coupon rate, What is this bond’s payback period?

What is the current yield of par value : What is the current yield of a $1,000 par value, 4% annual coupon bond that is selling for $950?

Under what circumstances is irr rate of return : Under what circumstances is an IRR a rate of return? Under what circumstances is a rate of return an IRR?

Discuss and present examples of use of operating covenants : discuss and present examples of the use of operating covenants, co- tenancy clauses, kick-out clauses, radius clauses,

Define process that you plan to use to conduct research : Please describe the process that you plan to use to conduct research, identify findings, and develop the Comprehensive Project due in the next Unit 5.

User Account

All Pages