What will be the percent change in the market price of bond

Assignment Help Accounting Basics
Reference no: EM133173074

Question - Desi Inc. has a bond outstanding with 8 percent coupon, paid semiannually, and 15 years to maturity. The market price of the bond is $1,091.96. If due to changes in market condition the market required rate of return suddenly increases by 2%, what will be the percent change in the market price of the bond?

Reference no: EM133173074

Questions Cloud

How can early childhood educators ensure equity : Describe the nature and importance of the partnerships with which Early Childhood Educators must work - How can Early Childhood Educators ensure equity
Problem-solving application case-money : The goal of this exercise is for you to examine the root causes of the Boeing 737 Max problem and consider what Boeing needs to do differently to fix it and avo
Difference between short and long-term goals : As a role as a coach or mentor, how is the process of setting such goals to support another person's needs different?
What is the NW of this project : The Cyclone Golf Resorts is redoing its golf course at a cost of $2,744,320. What is the NW of this project
What will be the percent change in the market price of bond : Desi Inc. has a bond outstanding with 8 percent coupon, paid semiannually, and 15 years to maturity. What will be the percent change in the market price of bond
What is the strategic reason for the merger or acquisition : What is the strategic reason for the merger or acquisition? What will or has happened to the CEOs of the two companies
What amount should be reported as gain on reversal : On January 10, 2021, Halo-Halo Enterprises had an equipment with a carrying amount of P2,000,000. What amount should be reported as gain on reversal
Choosing a repayment mortgage : Explain the factors Richard might have considered in choosing a repayment mortgage over an interest-only mortgage in 2019.
How much would you be willing to pay : You see they have made an average of $2.7 million in profits per year. The interest rate is 4.5%. How much would you be willing to pay to purchase the Jaguars

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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