What will the price be

Assignment Help Accounting Basics
Reference no: EM133037155

Question - Consider a zero-coupon bond which delivers $100 after 30 periods. The YTM is 10% and the price of the bond is $5.73.

Required -

1. What will the price be if the yield increases by 500 basis points?

2. What will the price be if the yield falls by 500 basis points?

Reference no: EM133037155

Questions Cloud

What is zisco dominant approach : 1. What is ZISCo's dominant approach in implementing strategy?
Prepare an effective interest amortization table : They are issued at $292,181 when the market rate is 8%. Prepare an effective interest amortization table for the bonds' first two years
Businesses that are outsourced in global markets : In the case of an Established firm and entrepreneurial firm, how important do you believe factors such as political, economic, or cultural risk impact the progr
Computers and technology for functioning in every day life : Society is becoming increasingly dependent on computers and technology for functioning in every day life.
What will the price be : Consider a zero-coupon bond which delivers $100 after 30 periods. The YTM is 10% and the price of the bond is $5.73. What will the price be
Dynamic and Embedded SQL and Triggers : Briefly discuss dynamic and embedded SQL. Cite an example of how either enhance database design and performance .
Organizational culture and innovation note : Organizational Culture and Innovation Note: this discussion is due Friday by midnight EST. Given the subject of the readings and resources regarding the interse
Estimate the expected return for Amazon : Past data shows that the analyst recommended a sell, a hold, and a buy, 20%, 30%, and 50%. Estimate the expected return for Amazon
Relationships between customers and the organizations : Conscious marketing involves looking beyond the product which creates win-win relationships between customers and the organizations.

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