With ten years to maturity if yield to maturity goes down

Reference no: EM13476752

You are called in as a financial analyst to appraise the bonds of Olsen's Clothing Stores. The $1,000 par value bonds have a quoted annual interest rate of 10 percent, which is paid semiannually. The yield to maturity on the bonds is 10 percent annual interest. There are 15 years to maturity.

a)Compute the price of the bonds based on semiannual analysis.

b.)With 10 years to maturity, if yield to maturity goes down substantially to 8 percent, what will be the new price of the bonds?
Round "PV Factor" to 3 decimal points.Round your answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.

Reference no: EM13476752

Questions Cloud

Assume d1 is 700 determine what will be the new value of p0 : ecology labs inc. will pay a dividend of 6.40 per share in the next 12 months d1. the required rate of return ke is 14

How country specific advantages associated with : i would like you to read it carefully and analyze the following sets of issues so that you can fully understand the

If required rate of return by common stockholders ke is : stagnant iron and steel currently pays a 12.25 annual cash dividend d0. they plan to maintain the dividend at this

Hammond keeney and raiffa explain in their book an approach : hammond keeney and raiffa describe in their book an approach designed to help you make the best possible choice. they

With ten years to maturity if yield to maturity goes down : you are called in as a financial analyst to appraise the bonds of olsens clothing stores. the 1000 par value bonds have

Write down a white paper on company of your choice and : write a white paper on a company of your choice and discuss the market segmentation within that industry along with the

Production and operations management hellogood morning i : hello ltbrgtgood morning ltbrgti have attached assignment quotcase studyquot in production and operations management

Research the library and the internet for information about : write 400 to 600 word response.research the library and the internet for information about technical writing for varied

Based on your research you can begin conducting a : rhetorical analyseswrite a rhetorical analysis of a famous speech. begin by researching and compiling background

User Account

All Pages