Zero-coupon bond-what is the bond price today

Assignment Help Financial Management
Reference no: EM132041113

1. A 2-for-1 stock split is declared. In this case, which of the following statements is true?

The cash account declines.

The common stock account rises.

The retained earnings fall.

The par value of the common stock is reduced.

2. A zero-coupon bond has a $1000 par value, and has 10 years to maturity. The yield-to-maturity is 5%, and the bond's period is annual. What is the bond's price today?

A. $588.23

B. $613.91

C. $985.23

D. $1050.42

Reference no: EM132041113

Questions Cloud

What is the wacc of rogers rotors : Rogers' Rotors has debt with a market value of $250,000, preferred stock with a market value of $50,000, and common stock with a market value
What is the firm yield to maturity for bonds : Curtis Equipment Inc., $1,000 par value, 15% annual coupon bonds, have 6 years remaining to maturity and are currently selling for $938.45.
What is the current yield-promised yield : What is the current yield & promised yield for a 10-year, zero-coupon bond priced at $405.00
Develop a story based on the theme of illness prevention : Develop a story based on the theme of illness/infection prevention you might have a child who gets sick and has to visit the doctor.
Zero-coupon bond-what is the bond price today : A zero-coupon bond has a $1000 par value, and has 10 years to maturity. What is the bond's price today?
What was the cash received from customers : The ending balance in accounts receivable equals $ 2,000. What was the cash received from customers?
What is the future value at the end : What is the future value at the end of year 10 of an annuity with 10 annual payments of 500 that start today, if the interest rate of the annuity is 6% per year
What is the yield to maturity : A bon with value of 1,000 has 16 years until maturity, carries a coupon rate of 5.8%, and sells for 1,109. What is the Yield to maturity?
What will be the effect on cash flows of sale : If your company's marginal tax rate is 15%, what will be the effect on cash flows of this sale?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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