What was the price of the bonds on given dates

Assignment Help Finance Basics
Reference no: EM132011329

Question: The Pennington Corporation issued a new series of bonds on January 1, 1987. The bonds were sold at par ($1,000); had a 12% coupon; and mature in 30 years, on December 31, 2016. Coupon payments are made semiannually (on June 30 and December 31).

a. What was the YTM on January 1, 1987?

b. What was the price of the bonds on January 1, 1992, 5 years later, assuming that interest rates had fallen to 10%?

c. Find the current yield, capital gains yield, and total return on January 1, 1992, given the price as determined in part b.

d. On July 1, 2010, 6 1/2 years before

Reference no: EM132011329

Questions Cloud

What advantages may occur for the family members in firm : In businesses that involve numerous members of the same family, the preferred business choice of conduct is the partnership. What advantages may occur.
Different sets of quantum numbers are possible : How many different sets of quantum numbers are possible for an electron for which n=1, n=2, n=3, n=4 & n=5?
Identify three ethical responsibilities expected from person : Identify three ethical responsibilities expected from persons such as attorneys, the court, and others, when protecting an expert witness in a case.
Radioactive isotope undergoes radioactive decay : A 2.0 gram sample of a radioactive isotope undergoes radioactive decay. If the half life of the isotope is 45 minutes
What was the price of the bonds on given dates : What was the price of the bonds on January 1, 1992, 5 years later, assuming that interest rates had fallen to 10%?
Why this would be a dilemma for the expert witness : Determine why this would be a dilemma for the expert witness and how you believe he / she should handle such a scenario in an ethical manner.
Explain the advantages of the virtual private network : Examine three (3) advantages and three (3) disadvantages of PGP and recommend whether or not the agency should use it. Post your findings.
How large will the balloon payment have to be : How large will this balloon payment have to be for you to keep your monthly payments at $1,050? (Do not round intermediate calculations and round your answer).
Compare the network-based and host-based ids use : Compare and contrast network-based and host-based IDS use in an enterprise network infrastructure.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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