What will be the new price of the bond

Assignment Help Finance Basics
Reference no: EM131928208

A bond is offered with face value of Rs 1000.00, a 5% coupon rate with annual rate with annual payments , and twenty years to maturity. If the market interest rate is 12%, what should be the price. If the market interest rate rises to 15%, what will be the new price of the bond? If the market interest rate drops to 9% instead, what will be the new price for the bond?

Reference no: EM131928208

Questions Cloud

Why the factor you selected in preceding step is important : Select choice that best describe the need an independent audit satisfies. Identify the reason(s) why the factor you selected in the preceding step is important.
What is the current price of a share of company x : If you have found the return on 10 year U.S Treasury bond is 5% and the expected market risk premium is 5.5%, what is the current price of a share of Company X?
Ethics in social networks : Topic - Ethics in social networks - Three definitions and fourth definition of the face. Based on your previous definitions
What if interest rates suddenly fall by 2 percent instead : If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?
What will be the new price of the bond : If the market interest rate rises to 15%, what will be the new price of the bond? If the market interest rate drops to 9% instead
Calculate the yield to call after five years : A corporation sold a 30-year bond with a coupon rate of 8% (4% semiannually) two years ago. The bonds are callable at 105% of par value 5 years after issue.
Prepare a formal income statement as of december : Briefly explain the reason for using subsidiary ledgers below. Prepare a formal Income Statement as of December 31, 20X1.
Compute the amount of inventory fire loss : Merchandise with a selling price of $30,200 remained undamaged after the fire, Compute the amount of inventory fire loss
Discussion on the financial and economic strategies used : The identification portion of the Company named Intel, and consists of gathering financial information financial ratios on the specific company (Intel).

Reviews

Write a Review

Finance Basics Questions & Answers

  How long do you have to wait to buy your yacht

You have $90000 saved today and want to purchase a new yacht when your money grows to $300000. If you can earn 10 percent on your investments, how long do you have to wait to buy your yacht?

  Find what is this offer worth to you today

Find what is this offer worth to you today at a discount rate of 8% - npv or CF function or timeline

  Growing annuity southern publishing company

Growing annuity Southern publishing company is trying to decide whether or not to revise its popular textbook, financial psychoanalysis

  Calculate portion of first monthly payment contributed

Calculate the portion of the first monthly payment contributed towards interest in cell D12. Calculate the portion of the first monthly payment contributed towards principal in cell E12.

  What is the most should be willing to pay for a share

He thinks the price will be about $75 when he sells. What is the most should be willing to pay for a share of Denhart if he can earn 10% on investments of similar risk?

  I you deposit 45000 in a savings account that pays 10

if you deposit 45000 in a savings account that pays 10 interest compounded monthly for 5 years. what is the future

  Computing fv and pv of ordinary annuity

You will receive $2,000 at the end of next 12 years, supposing a 6% discount rate, what is the present value of cash flows?

  How can the forecasts be improved

Collect a reasonably long set of data, and see how well standard forecasting methods work. How can the forecasts be improved?

  Calculate accrued interest due to seller from buyer

What is the discount yield, bond equivalent yield and effective annual return on a $1 million Treasury Bill that currently sells for 99:08 and is 181 days from maturity - Calculate the accrued interest due to the seller from the buyer at the time o..

  Estimation of organizations financial performance

Estimate your selected organization's financial performance over the past two years using financial ratios. Calculate the following ratios for each year

  What is a materials requirement planning system

What is a just-in-time (JIT) inventory system? What type of relationship and level of cooperation must exist between manufacturers and suppliers for a JIT.

  Units and standard deviation

Let X be a normal random variable with mean 194 units and standard deviation 6 units. Answer the following questions, rounding your answers to two decimal.

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