Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) A 20-year bond with par value of $1,000 has the 9 percent annual coupon. Bond presently sells for $925. If bond's yield to maturity remains at its present rate, find the price of bond 5 years from now?

i) $ 966.79
ii) $ 831.35
iii) $1,090.00
iv) $ 933.09
v) $ 925.00

2) You might have heard of zero coupon bonds i.e. zero-coupon bonds pay their owners $1,000 at maturity and engage no other cash flows other than purchase price. If you purchased the zero coupon bond for $300, held bond for 10 years, and then cashed it in for $1,000 at the ending of 10th year, determine the average annual rate of return that would you realize on your investment?

i) 1.28%
ii) 12.79%
iii) 113%
iv) 30%
v) 233%

3) In a newspaper one of Microsoft's bonds is given as follows: Microsoft 7 30 According to this listing:

i) Bond was issued on July 30 (7/30).
ii) Bond matures in seven years and its yield if held to maturity is 30%.
iii) Coupon interest rate for this bond is 7% and it matures in 2030.
iv) Yield to maturity for this bond is 7% and it matures in 30 years.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914146

Have any Question? 


Related Questions in Basic Finance

1 what is the difference between venture capital firms and

1. What is the difference between venture capital firms and private equity firms? What roles do they play in the financial system? 2. The author of a newspaper article providing advice to renters observes that "landlords ...

The carlton corporation has 5 million in earnings after

The Carlton Corporation has $5 million in earnings after taxes and 2 million shares outstanding. The stock trades at a P/E of 20. The firm has $4 million in excess cash. a. Compute the current price of the stock. b. If t ...

1 visit the nvoad website and find out what organizations

1. Visit the NVOAD website, and find out what organizations are members of your state VOAD ( http://www.nvoad.org/membersdb.php?members state ). 2. Contact your state office of emergency management, and ask them if your ...

1 what dangers are encountered by mortgagees and unreleased

1. What dangers are encountered by mortgagees and unreleased mortgagors when property is sold "subject to" a mortgage? 2. What is the difference between equity of redemption and statutory redemption? 3. What special adva ...

The stock of company a has a beta of 15 the return of

The stock of company A has a beta of 1.5. The return of market portfolio is 9% and the risk-free rate is1%. 1) According to the Capital Asset Pricing Model (CAPM), what is the expected return of this stock? 2) Assuming t ...

1 discuss how the interrupted time series design with a

1. Discuss how the interrupted time series design with a reversal and the interrupted time series design with multiple replications improve on the simple interrupted time series design. 2. Distinguish between a longitudi ...

Suppose that you are following the stock of a firm that has

Suppose that you are following the stock of a firm that has been experiencing severe problems. Failure is imminent unless the firm is granted government guaranteed loans. If the firm fails, its stock will, of course, fal ...

Finance assignmentpoveide a sulotion with it i dont want

Finance Assignment Poveide a sulotion with it I don't want only the answer Suppose that the current spot exchange rate is €1.50/£ and the one-year forward exchange rate is €1.60/£. The one-year interest rate is 5.4% in e ...

1 credit report what are the six major areas of information

1. Credit Report. What are the six major areas of information that may be included on your credit report? 2. Credit Score. What factors determine your credit score and how are these factors weighted by FICO? 3. Vantage S ...

What is the objective of an industry self-regulatory

What is the objective of an industry self-regulatory organization? Compare and contrast three types of futures trading costs? Compare and contrast cash settlement with physical settlement ? Identify the typical character ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen