What will the price be for this bond in 5 years

Assignment Help Finance Basics
Reference no: EM131891002

The current yield to maturity (YTM) of a 30-year coupon bond with $1,000 par value, 7.5% coupon rate and semi-annual payment is 3.17%. Let's assume that in 5 years, the YTM on this increases to 5.24%. What will the price be for this bond in 5 years?

Reference no: EM131891002

Questions Cloud

Two mutually exclusive projects are under consideration : Virus Stopper Inc., a supplier of computer safeguard systems, two mutually exclusive projects are under consideration.
What is the plants net initial cash outlay : What is the plants net initial cash outlay (CFo) and year 1 (CF1) relevant net cash flow?
What is the cost of external equity : If flotation costs are 10.0% of the issues gross proceeds, what is the cost of external equity?
What is the amount of annual payment that sarah must make : Sarah just graduated from college. What is the amount of annual payment that Sarah must make at the end of each year for 7 years
What will the price be for this bond in 5 years : Let's assume that in 5 years, the YTM on this increases to 5.24%. What will the price be for this bond in 5 years?
What is the value of the firm tax shield : The firm's tax rate is 36 %. What is the value of the firm's tax shield (i.e. the change in firm value due to the use of leverage in the capital structure)?
Estimate of the current stock price : The required return on equity market is 9.5%, the risk-free rate is currently 3.5% and the company is beta is 1.75. What is your estimate of the current stock p
What is the profitability index of the investment : You are offered an investment with returns of $ 1,184 in year 1, $ 3,447 in year 2, what is the Profitability Index of the investment?
What is the amount of cash that buyer pays the seller : A sales invoice included the following information: merchandise price, $68,000; what is the amount of cash that buyer pays the seller

Reviews

Write a Review

Finance Basics Questions & Answers

  Overall moral of their employees

Should companies be considering ways to reduce the gap to improve the overall moral of their employees?

  What is the smallest expected loss for this portfolio over

The standard deviations of the assets are 29 percent and 48 percent, respectively. The correlation between the two assets is .15 and the risk-free rate is 5 percent. What is the optimal Sharpe ratio in a portfolio of the two assets? What is the small..

  What are apples business models

Apple has been successful in expanding its product and service portfolio from computers to MP3 players to mobile phones. What are Apples's business models? Describe the core competencies that have allowed Apple to make the moves from Mac to iP..

  Company x is 60 debt-financed and the expected return on

company x is 60 debt-financed and the expected return on its debt is 6. its equity beta is 2. risk-free rate of return

  How much money are you borrowing

In keeping with his reputation, he requires that the first payment be paid today. He also charges you 2 percent interest per month. How much money are you borrowing?

  How much would bonjur have to pay in dollars for the

exchange gain or loss. bonjur inc. imports french cheeses for distribution in the us.on april 1 the company purchased

  The international debt crisis-causes

Too-Big-To-Fail doctrine-purposes and consequences and or The international debt crisis-causes, consequences, and remedies Case Projects

  Calculate the weighted average cost of capital

In calculating the weighted average cost of capital, which sources of finance, listed in the above table, would not be included in your calculation, and why? Calculate the weighted average cost of capital (WACC) for Premier Milling Company Ltd

  How much does the queue cost

A single-server queue has random arrivals at a rate of 30 an hour and random service times at a rate of 40 an hour. If it costs £20 for each hour a customer spends in the system and £40 for each hour of service time, how much does the queue cost?

  Differentiate marginal tax rate and your average tax rate

What are the main sources available to help people prepare their taxes? For each of the following, indicate if the item is a tax deduction or a tax credit.

  What types of expenses might increase the net working capita

What types of expenses might increase the Net Working Capital (NWC) requirements as a result of a capital budgeting project?

  Access investopedia-markets-sectors

Access Investopedia-Markets-Sectors (Links to an external site.) Write a 3-5 page paper in APA format (minimum of two references) comparing and contrasting the Best Performing Sectors and the Worst Performing Sectors (displayed as two tables at the ..

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