Determine total expenditure, Finance Basics

Assignment Help:

Determine the amount you would be willing to pay for a $1,000 par value bond paying $80 interest each year (annual) and maturing in 12 years, assuming you wanted to earn a 9% rate of return.

a	Interest per year	mce_markernbsp; 80.00
b	Years to maturity	12
c	Par value	mce_markernbsp; 1,000.00
d	Required rate of return	9%
e	Intrinsic value of bond	mce_markernbsp; 928.39
	($1000/1.09^12 + $80 x PVIFA(12,9%)

Related Discussions:- Determine total expenditure

Determine the classification of new issue market, Classification of New Iss...

Classification of New Issue Market New market can be classified as: (i) A market where firms go to public for the first time through initial public offering (IPO). (ii

Financial structure or dividend policies, Every time a listed company does...

Every time a listed company does a share buyback, investors and media alike would debate fiercely on the merits of such a scheme. There are investors who prefer buybacks to high

Base case NPV., blah blah

blah blah

Example of npv method, Example of NPV Method Resolution limited inte...

Example of NPV Method Resolution limited intends to purchase a machine worth Shs.1, 500,000 that will have a residue value Shs.200,000 after 5 years helpful life. The saving

Finance Instrumant and Market , What factors would affect company consider ...

What factors would affect company consider in choosing option for capital-raising

Solutions - relationship between auditors and shareholders, Solutions to th...

Solutions to the conflict - Relationship between Auditors and Shareholders 1. Firing The auditors may be detached from office at the AGM via the shareholders. 2. Lega

Project apparisal, challenges your likely to face when apparising a project...

challenges your likely to face when apparising a project on the implemtation stage

determine the benefit - cost and benefit/cost ratios, A City has determine...

A City has determined that building a new water distribution system using a new source of water would have an annual costs of $5,750,000 and annual net benefits of $4,250,000. The

Channelling of funds from savers to spenders important, How is the channell...

How is the channelling of funds from savers to spenders very important? The channelling of funds by savers to spenders is very significant for two purposes: • One, lender-sa

Define the term- origination, Define the term- Origination Originati...

Define the term- Origination Origination offers to the work of investigation, analysis and processing of new project proposals. Origination starts before an issue is really

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages