What would be the value of this bond

Assignment Help Financial Accounting
Reference no: EM132848552

Question - A bond that matures in 20 years has a ?$1,000 par value. The annual coupon interest rate is 14 percent and the? market's required yield to maturity on a? comparable-risk bond is 13 percent.

a. What would be the value of this bond if it paid interest? annually?

b. What would be the value of this bond if it paid interest? semiannually?

Reference no: EM132848552

Questions Cloud

How much will operating income change : Zephram Corporation has a plant capacity of 200,000 units per month. If they accept the special order, how much will operating income change
What is the approximate percentage of bulbs : The manufacturer of an extended-life lightbulb claims the bulb has an average life of 13,000 hours with a standard deviation of 1,000 hours.
Distinguish between the short run and the long run : Distinguish between the short run and the long run. What will differentiate the short run and the long run? Describe fixed inputs and variable inputs.
Cases in an upper east side hospital : The percentage varied from a high of an estimated 59.5% of cases in East Harlem to a low of 12.4% of cases in an Upper East Side hospital.
What would be the value of this bond : A bond that matures in 20 years has a ?$1,000 par value. What would be the value of this bond if it paid interest? semiannually
What is erin expected value for 2-point shots : Erin is a basketball player who makes 70% of her 2-point shots and 20 percent of her 3-point shots.
Describe economies of scale and diseconomies of scale : How can the long-run average cost curve be derived from the short-run average total cost curve? Describe economies of scale and diseconomies of scale.
Why do firms calculate the weighted average cost of capital : Why do firms calculate their weighted average cost of capital? In computing the cost of capital, which sources should be considered?
What amount of amortization expense would chair record : Chair Leader Co. purchased a patent on January 1, 20x3 for 120,000. What amount of amortization expense would Chair record

Reviews

Write a Review

Financial Accounting Questions & Answers

  What margin of safety in terms of sales revenue is

The unit sales price is $100, unit variable cost is $35, and the fixed costs per month are $5,000. The margin of safety in terms of sales revenue is

  What are some inputs to the data dictionary

What are some inputs to the data dictionary? According to framework for audit of source data controls, tests of control audit procedures involves

  Internal control inherent in the maker-checker procedure

Access to the computer system is password-protected and task-specific, which means that the computer system will not allow the employee to approve a transaction or the supervisor to record a transaction. Identify the principles of internal control in..

  Advise polaris ltd - consolitiated financial statement

Advise Polaris Ltd whether it is required In pnxitze consolitiated financial .lawinciti% (CF31. Consider the levels of control and the iuentbers' rights in vow answer

  Calculate convexity for three-year five percent coupon rate

Calculate the convexity for a three-year 5% coupon rate with a face value of $500,000 loan. What is the convexity of the same loan but with amortised payments?

  What the assets fourth full year of depreciation expense

An asset has a cost of $50,000, with a residual value of $10,000. Under double-declining-balance, what's the asset's fourth full year of depreciation expense?

  Construct the armstead journal entry

Construct the Armstead's 2020 journal entry with respect to the depreciation expense that was recorded in the years before 2020.

  Find and calculate the wacc

Find and Calculate the WACC. Vision oil and Gas Company has 10 million shares each with a value of $4.20, whose cost is 7.5%

  What is the cost of the new animal shelter

Kroll Dog Care Co. wants to finance a new animal shelter by making twelve annual deposits into a fund earning 3%, compounded annually. The first six deposits are $21,000 each and will be paide at the beginning of the next six years. The last six depo..

  Divorce based on irreconcilable differences

Mrs. Barnes had a prenuptial agreement with her husband that if there were a dissolution of the marriage on any grounds other than agreed upon irreconcilable differences, the husband would forgo any monies or assets left to her by her parents’ estate..

  Reinvested continuously at an annual rate of return

For the 2009 fiscal year, Lowe's Companies, Inc. reported an annual net income of $48,230,000. Assume the income can be reinvested continuously at an annual rate of return of 5.8% compounded continuously and that Lowe's will maintain this annual net ..

  How much interest would billy have to pay

Simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Billy have to pay in a 30-day month?

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