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

Assume a linear velocity distribution and a linear

Assume a linear velocity distribution and a linear concentration profile in the laminar boundary layer over a flat plate. Apply the boundary conditions for a laminar boundary layer and evaluate the velocity and concentra ...

Mike riskless is considering two projects he has estimated

Mike Riskless is considering two projects. He has estimated the IRR for each under three possible scenarios and assigned probabilities of occurrence to each scenario. State of Economy Probability Estimated BTIRR Investme ...

Name the industrywith this case a comparison is made

NAME THE INDUSTRY With this case, a comparison is made between three firms in different industries using net profit margin, total asset turnover and current ratio. 1. Apple Fiscal year 2010 ended September 25, 2010, and ...

In fig 911 is intermediate code to compute the dot product

In Fig. 9.11 is intermediate code to compute the dot product of two vectors A and B. Optimize this code by eliminating common subexpressions, performing reduction in strength on induction variables, and eliminating all t ...

Go to wwwgpoaccessgoveop the web site for the economic

Go to www.gpoaccess.gov/eop/, the Web site for the Economic Report of the President. On the left of the screen, go to "Downloadable Reports/Tables" and in the "Statistical Tables" click on 2010. In the tables, use Table ...

1 explain how and why the marketing mix can vary in global

1. Explain how and why the marketing mix can vary in global markets. 2. Explain why consumer products often require more adaptation than industrial products sold in business-to-business markets. 3. Discuss the incentives ...

The alpha company has issued a total of 15000000 shares of

The Alpha Company has issued a total of 15,000,000 shares of common stock at par(its value to the firm is $15,000,000. The dividend yield is 7%. The company also has $5,000,000 of bonds(also sold at par) with a coupon ra ...

Question again1 interest rates the cost of money

QUESTION AGAIN #1 Interest rates, the cost of money, influence most all factors related to personal and corporate capital budgeting. The more obvious personal information for the cost of money is the rates associated wit ...

Write a questionnaire about a new storeassume that you have

Write a questionnaire about a new store. Assume that you have been asked to write a report on the feasibility of opening a packaging and shipping store, such as a UPS Store, in your town. Because students at your school ...

1 what is a restricted range and what effect does it have

1. What is a restricted range, and what effect does it have on correlation coefficients? How would you detect and correct a restricted range? 2. How do we know whether a particular score is an outlier?

  • 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