What was the original value of the premium

Assignment Help Financial Management
Reference no: EM131997922

There is a bond on a company’s books with an original term of 10 years that was purchased for a premium at its issuance, just over 2 years ago. The bond pays semi-annual interest. With the receipt of the latest coupon, the corresponding amount for amortization of the premium was $343.33. Exactly one year ago, the amount for amortization of the premium was $313.80. Based on the relation between subsequent amounts for amortization of the principal, what was the original value of the premium? Interest rates are not given.

Reference no: EM131997922

Questions Cloud

How is cash flow different than net income : How is cash flow different than net income? What are some items included in the cash flow statement that are not included in the profit and loss statement?
Find out the european put option price : Find out the European put option price with same underlying asset, same maturity and strike price.
What is the standard deviation of the analyst profit : What is the expected return (in dollars), and what is the standard deviation of the analyst’s profit?
What is the price of the bond if the investor yield : What is the price of the bond if the investor’s yield (the “yield-to-worst”) is 9.5%?
What was the original value of the premium : Based on the relation between subsequent amounts for amortization of the principal, what was the original value of the premium?
What is transportation weighted average cost of capital : What is Thomas Transportation’s weighted average cost of capital?
What is the cost of equity and wacc : If there are no taxes and the EBIT is $2,633,750, what is the cost of equity? What is the WACC?
Calculate the degree of financial leverage for the firm : Calculate the degree of operating leverage for the firm. Calculate the degree of financial leverage for the firm.
Organization is to maximize the value of the firm : For all organizations, especially public-traded companies, one of the main goals of the organization is to maximize the value of the firm.

Reviews

Write a Review

Financial Management Questions & Answers

  Black-scholes model to value put options on the stock

An analyst is interested in using the Black-Scholes model to value put options on the stock of Marble LTD.

  First annuity payment is made on the date of purchase

what is the value of the annuity on the purchase date if the first annuity payment is made on the date of purchase?

  Refused to go through with the sales deal

Larry later refused to go through with the sales deal, so Will sued Larry in a Missouri court.

  What would be the payment on the principal for the payment

what would be the payment on the principal for the payment at the end of the seventh payment on a 15 year mortgage?

  Considering a project with a project-level beta

Giggle is considering a project with a project-level beta of 0.74. The appropriate discount rate for the project is:

  Bonds is selling for the lowest price

Which of the following bonds is selling for the lowest price?

  All non-current asset treated in project wolf

HOW IS THE DEPRECIATION OF 20% TO ALL NON-CURRENT ASSET TREATED IN PROJECT WOLF?

  What is the rate of return on investment

Calculating the Rate of Return of Investment Using Financial Leverage. Suppose Shaan invested just $10,000 of his own money and had a $90,000 mortgage with an interest rate of 8.5 percent. If after three years he sold the property for $120,000. What ..

  Shares outstanding-what is the price per share

Cool Shoes (CS) had 2014 sales of $518 million. You expect sales to grow at 9% next year(2015), but, decline by 1% per year after until you settle to a long -run growth rate of 4%. You expect EBIT to be 9% of sales, increases in net working capital r..

  The dividend yield must be at least

Suppose the? S&P 500 is at 857?, and one-year European call option with a strike price of ?$584 has a negative time value. The dividend yield must be at least.

  Assume the company tax rate-find the wacc

Assume the company's tax rate is 32 percent. Find the WACC.

  Firms required return using both CAPM-constant growth model

A firm's upcoming dividend is expected to be 2.25 and its stock is selling at $65. The firm has a beta of .8 and is expected to grow at 10% in the foreseeable future. Compute the firms required return using both CAPM and the constant growth model. As..

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