What price do you need to pay if you were to buy bond today

Assignment Help Financial Management
Reference no: EM132018938

1. A semi-annual corporate bond with a coupon rate of 6% is quoted at $1013.20 today. The number of days in each coupon period is 180. It has been 75 days since the last coupon was paid. What price do you need to pay if you were to buy this bond today?

2. What is the NPV of this project (if the rocc is 10%) Consider this project: T year vs Cash Flow 0.0 years and -180 cash flow 1.0 year and 50 cash flow 2.0 years and 180 cash flow.

Reference no: EM132018938

Questions Cloud

What ratio is a good indicator of large barriers to entry : what ratio is a good indicator of large barriers to entry?
Using the diffusion of innovation theory : Using the diffusion of innovation theory, what factors contributed to the rapid adoption and success of Amazon.com?
Find the most recent annual financial statements : Find the most recent annual financial statements for Coca Cola and do the following calculations.
Consumption associated with defaulting and repaying : Write down expressions for the levels of consumption associated with defaulting and repaying, respectively.
What price do you need to pay if you were to buy bond today : It has been 75 days since the last coupon was paid. What price do you need to pay if you were to buy this bond today?
About real rate of interest that customer is being charged : A customer is considering taking out a loan to purchase a piece of furniture. What does this imply about real rate of interest that customer is being charged.
Transaction deposits on its balance sheet : BSW Bank currently has $900 million in transaction deposits on its balance sheet.
Mutually exclusive project-calculate npv for each project : Consider the following two mutually exclusive projects: Calculate the NPV for each project,
Incremental net present value of replacing current machine : Assuming a discount rate of 7%, what is the incremental net present value of replacing the current machine?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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