What will be the value of the bond

Reference no: EM131018484

Chicharito owns a 5-year bond with a face value of $1000 and a coupon rate of 10% with annual payments. Current bond worth = $1,216.47. If market interest rates remain unchanged, what will be the value of the bond when there are only 3 years left until maturity?

Reference no: EM131018484

Questions Cloud

What are the pros and cons of increasing dividends : What are the pros and cons of increasing dividends? or paying their shareholders higher divdends?

What is the company''s cost of equity : CALCULATING COST OF EQUITY The Absolute Zero Co. just issued a dividend of $3.40 per share on it common stock. The company is expected to maintain a constant 4.5 percent growth rate in its dividends indefinitely. If the stock sells for $35 a share, w..

Variable costs fixed costs mixed costs classify each cost : Variable costs Fixed costs Mixed costs Classify each cost above as either variable, fixed, or mixed. Direct Materials Direct Labor Utilities Rent Maintenance Supervisory salaries

Find the price elasticity of demand : The market for hotdogs is characterized by demand Qd=60-2P and supply Qs=4P. Which of the following price ceilings will result in a market shortage?

What will be the value of the bond : Chicharito owns a 5-year bond with a face value of $1000 and a coupon rate of 10% with annual payments. Current bond worth = $1,216.47. If market interest rates remain unchanged, what will be the value of the bond when there are only 3 years left unt..

Determine the amount of heat loss or gain : Stearn enters a turbine with negligible velocity, at 4 MPa, 600°C and a flow rate of 36.000 kg/h. It leaves the turbine at 15 kPa with a velocity of 300m/s and a quality of 0.5. Determine the heat loss or gain for the steam as it passes through th..

The required rate of return is 15 percent : Shylock Corporation JUST PAID a dividend of $9.52. The expected growth rate on dividends is 5 percent. What is the current price of this stock if the required rate of return is 15 percent?

How each category of stakeholder impacts the overall success : Assess how globalization and technology changes have impacted the corporation you researched.

Receive a single payment of $10000 : You'll receive a single payment of $10000 from a bank deposit in 5 years at an interest rate of 3.5 percent. What does the $10000 payment represent?

User Account

All Pages