Zero coupon treasury bonds are currently selling

Assignment Help Financial Management
Reference no: EM13934513

The U.S. 5-years zero coupon Treasury bonds are currently selling at $791,031.15. No payments will be made until the bond matures 5 years from now, at which time it will be redeemed for $1,000,000. What annualized interest rate would you earn if you bought this bond at the current market price?

Reference no: EM13934513

Questions Cloud

General ledger accounts related to inventory : Place Y (Yes) beside the general ledger accounts related to inventory in a job order cost system and N (No) by those that are not.
What is the ionization state of each residue at ph5.2 : The active site of lysozyme contains two amino acid residues essential for catalysis: Glu35 and Asp52. The pka values of the carboxyl side chains of these low residues are 5.9 and 4.5 respectively. What is the ionization state (protonated or deprot..
What is the maximum profit and loss for position : An investor purchases a stock for $45 and a put option for $.85 with a strike price of $41. The investor also sells a call option for $.85 with a strike price of $54. What is the maximum profit and loss for this position?
Static methods for processing an array of marks : For this task you will create a class containing a number of static methods for processing an array of marks, which are scores in a test. Each mark is an integer in the range 0 to 100 inclusive. On the Interact site for this subject, you will be p..
Zero coupon treasury bonds are currently selling : The U.S. 5-years zero coupon Treasury bonds are currently selling at $791,031.15. No payments will be made until the bond matures 5 years from now, at which time it will be redeemed for $1,000,000. What annualized interest rate would you earn if you ..
find the minimum and maximum values in s : Given an array s =(s[1], s[2], . . . , s[n]), and n = 2^d for some d = 1. We want to find the minimum and maximum values in s. We do this by comparing elements of s.
What property of water gives rise to capillary action : The antibiotic, polymyxin B, attaches itself to the phospholipids in the bilayers of bacterial cells and increases the permeability of the membrane. What is a likely result that this antibiotic will have on bacterial cells?
Would it be the availability of credit : What is tipping theory? how would you apply it to any part of our economy? Most important, where does it start? For instance, if you apply the theory to the auto industry, then what would tip new car purchases? Would it be the availability of credit?..
Communication and interpersonal skills in clinical practice : Write a reflective essay on student development in practice and at the university. ‘A reflection, Relating to ...... Communication and interpersonal skills in clinical practice.

Reviews

Write a Review

Financial Management Questions & Answers

  Respective mortgages as bundle in mortgage-backed security

Suppose there are two mortgage bankers. Banker 1 has two $800,000 mortgages to sell. The borrowers live on opposite sides of the country and face an independent probability of default of 6%, with the banker able to salvage 40% of the mortgage value i..

  About the annual dividend

Miller Brothers Hardware paid an annual dividend of $0.95 per share last month. Today, the company announced that future dividends will be increasing by 2.6 percent annually. If you require a 13 percent rate of return, how much are you willing to pay..

  Explain differences of pledging and factoring receivables

Explain the differences between pledging and factoring receivables. Explain the difference between a floating lien and a trust receipts arrangement.

  Actual implementation of their distribution policy

Which of the following help firms determine the actual implementation of their distribution policy? check all that apply?

  Electric tricycle line-what is break-even number of units

You run a toy company that is considering updating your electric tricycle line. The upgrades will cost $30 million and will add a fixed cost of $1 million per year, but will decrease your variable costs by $40 per unit. What is the NPV of this projec..

  Last dividend is expected to grow at the rate

Dallas Corporation stock is selling at $47 a share. The company will pay a dividend of $3.50 at the end of one year, $4.00 at the end of two years, and then $4.50 at the end of three years. However, this last dividend is expected to grow at the rate ..

  Decision using the principle of the time value of money

Most states have turned to the lottery to raise money for education and other state financing needs. Determine the largest payout for the state in which you reside. Explain the options for receiving the money and select the method you would choose. P..

  Current value of firm using terminal value technique

Firm B is considering the acquisition of Firm Y. Firm B has estimated the cash flows, cost of capital, and growth rate for firm Y shown below. Using these estimates, estimate the current value of firm Y using the terminal value technique.

  State what effect would rising rates on corporate earnings

Given this economic background...Compose a 2-4 page report, single-spaced, on the following topic: If the Fed decides to raise interest rates next year, what effect would rising rates have upon the following:

  Why profitability ratios at small banks typically differ

Explain how and why profitability ratios at small banks typically differ from those at the largest money center banks.

  Shareholders as the annual dividend

Michael's, Inc. just paid $2.20 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 4.80 percent. If you require a rate of return of 9.0 percent, how much are you willing to pa..

  What is value of dividend that investors expect corporation

Two corporations A and B have exactly the same risk, and both have a current stock price of $100. Corporation A pays no dividend and will have a price of $120 one year from now. Corporation B pays dividends and will have a price of $113 one year from..

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