What will the price of the bond? be

Assignment Help Business Economics
Reference no: EM131756531

Pricing a Bond.

A bond promises to pay ?$100 next year and the interest rate is 6 percent per year

a. What will the price of the bond? be? ?(Enter your response rounded to the nearest penny?.)

b. What will the new price of the bond be if the interest rate rises rises to 8 ?percent? ?(Enter your response rounded to the nearest penny?.)

Reference no: EM131756531

Questions Cloud

What damages is edward entitled to recover : What damages is Edward entitled to recover?
How social security was first introduced to united states : How Social security was first introduced to the united states? In January SSA suddenly announced that it would stop mailing paper statements to anyone under 60.
What is the relationship between power and politics : What is the relationship between power and politics?
What will be the effect on the income statement : If the company retires the bonds for $74,150, what will be the effect on the income statement?
What will the price of the bond? be : A bond promises to pay ?$100 next year and the interest rate is 6 percent per year a. What will the price of the bond? be?
Prepare the liabilities section of obrians balance sheet : Prepare the liabilities section of O'Brian's balance sheet using the following information:
Output fell and the price level rose : A country reported nominal GDP of $115 billion in 2010 and $125 billion in 2009. It also reported a GDP deflator of 85 in 2010 and 100 in 2009.
What was the amount of net sales : Selected financial statement data for Schmitzer Inc. is shown below: Balance sheet: Inventories 60,000 48,000. What was the amount of net sales for 2016
Compute depreciation expense on the machine : Compute depreciation expense on the machine for the year ending December 31, 2017, and the year ending December 31, 2018

Reviews

Write a Review

Business Economics Questions & Answers

  Import bans import quotas voluntary export restraints

Import bans import quotas voluntary export restraints and tires on Goods all I increase equilibrium quantity and price decreases equilibrium quantity and price see increases equilibrium quantity but decreases price or decreases equilibrium quantities..

  Q for two weeks record the price and quantity of your

q. for two weeks record the price and quantity of your purchases of a gasoline and b one other item you buy regularly

  What is the one month forward exchange rate

Suppose that the CIP holds. Suppose that dollar and euro 1-month interest rates are equal at 5%. The current spot rate in 1$/euro. What is the one month forward exchange rate?

  Q1 if the aggregate-demand curve is given by the equation

q1. if the aggregate-demand curve is given by the equation p400-2xy and long run aggregate supply100 the long run

  Specializing completely in the area

Suppose that they are thinking of every specializing completely in the area in which they have a comparative advantage also then trading.

  Money market funds are yielding almost nothing

Money market funds are yielding almost nothing. Last month, the interest rate on a money market fund averaged 0.08% a year and on 5-year CDs it was 2.6% a year. The inflation rate was 0.1% a year. Calculate the real interest rate on each of these fin..

  A tax system achieves equity

A tax system achieves equity when:

  What is the dominant strategy

Consider the case of two identical firms, each with a cost function C(yi)=yi^2/1+10yi where i = 1 or 2. These are the only two firms in the market for this good. The market demand is P = -2Q +280. Write the information found in (a) – (c) into a norma..

  Impact on a companys profitability

The demise of the U.S. auto industry would have a devastating impact on our national economy and specifically the economies of Michigan and Ohio.

  Parties occasionally propose cutting federal gasoline tax

US politicians from both parties occasionally propose cutting the federal gasoline tax (which is a unit tax) only during the summer months, when prices tend to increase. Assume that gasoline refineries run near full capacity during the summer, so the..

  What is the expected cost of the promotion

Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 36,500 miles. Management also believes that the standard deviation is 5000 miles and is normally distributed. For each tire sold, what is the expected cost of the p..

  Security system companys total production costs

A security system company’s total production costs depend on the number of systems produced according to the following equation: Total Costs = $10,000,000 + $2000*quantity produced. What is the average total cost of production when 20,000 units are p..

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