(Answered) Kintel inc management wants to raise 1 million by issuing

Economics

Kintel, Inc., management wants to raise $1 million by issuing six-year zero coupon bonds with a face value of $1,000. The company's investment banker states that investors would use an 11.82 percent discount rate to value such bonds. Assume semiannual coupon payments.

At what price would these bonds sell in the marketplace?

How many bonds would the firm have to issue to raise $1 million?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M93070848
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Economics

When nespresso as a brand took over the world what do you

When Nespresso as a brand 'took over the world' What do you think that happened with coffee sales in HM and SM? Was Nespresso's model of own stores 'killing' the sales of coffee in Hyper and Supermarkets?

Calculating tax incidencesuppose that the us government

Calculating tax incidence Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 40 billion bottles of wine were sold every year at a price of $5 per bottle. After the tax, 34 billion bo ...

At a college 66 of courses have final exams and 56nbsp of

At a college, 66 % of courses have final exams and 56 % of courses require research papers. Suppose that 45 % of courses have a research paper and a final exam. Find the probability that a course has NONE of these two r ...

A if the required reserve ratio is 250 percent what is the

a. If the required reserve ratio is 2.50 percent, what is the monetary multiplier? b. If the monetary multiplier is 5, what is the required reserve ratio?

Espn pays the nfl 11 billion per year for 8 yrs for the

ESPN pays the NFL $1.1 Billion per year for 8 yrs for the right to exclusively televise football. What is the NPV of the investment if the parent Disney CO has an opportunity interest rate that is equal to the cost of ca ...

My null hypothesis relates to shipping costs being higher

"My null hypothesis relates to shipping costs being higher for critical orders than low priority orders. So u1 - u2 less than or equal to 0 is null hypothesis and right-tailed t-test. What I am unsure of is which is the ...

The abc movie theater has 300 seats in a typical month 25

The ABC movie theater has 300 seats. In a typical month, 25 percent of the seats are sold. The price elasticity is estimated to be -0.9. The price of a ticket is $8.00. The manager wants to increase the attendance to 30 ...

Suppose a bond with no expiration date has a face value of

Suppose a bond with no expiration date has a face value of $10,000 and annually pays a fixed amount of interest of $900. a. In the table provided below, calculate and enter either the interest rate that the bond would yi ...

For assumption of regression the four assumption linearity

For assumption of regression, the four assumption, linearity, independence, no multicollinearity, equal Variance, which one cannot be detected by any means?

Suppose that third national bank has reserves of 20000 and

Suppose that Third National Bank has reserves of $20,000 and check able deposits of $200,000. The reserve ratio is 10 percent. The bank sells $20,000 in securities to the Federal Reserve Bank in its district, receiving a ...

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

Recent Questions

Ask Business Economics Expert