The Garraty company has two bond issues outstanding. Both bonds pa $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years and Bond S a maturity of 1 year. A). What will be the value of each of these bonds when the going rate of inters is (1) 5 percent, (2) 8 percent and (3) 12 percent? Assume that there is only one more interest payment to be made on Bond S.
- 👍
- 👎
- 👁
- ℹ️
- 🚩
-
- 👍
- 👎
- ℹ️
- 🚩
-
- 👍
- 👎
- ℹ️
- 🚩
Answer this Question
Similar Questions
-
Math
A bond with a face value of $500,000 pays quarterly interest of 2% per each period. Twenty-six interest payments remain before the bond matures. How much would you be willing to pay for this bond today if the next interest payment is due now and you want
-
Science!
To form an oxygen molecule (O little 2) two oxygen atoms share two pairs of electrons. What kind of bonds shown below by the electron dot diagram of O little 2? Choose all that apply. Diagram . . . . O = O . . . . A. Covalent bond B. Ionic bond C. Single
-
chem
If the reaction 2HgO --> 2Hg + O2 is endothermic, which bonds are the strongest? The bonds between Hg atoms in the solid metal. The bond between Hg & O. The bond between O & O.
-
BUS 401
Suppose a zero-coupon bond is selling for $614.00 today. It promises to pay $1,000 in exactly 10 years with annual compounding. Its annual rate of return would be about
-
Intermediate Accounting
The 10% bonds payable of Klein Company had a net carrying amount of $570,000 on December 31, 2006. The bonds, which had a face value of $600,000, were issued at a discount to yield 12%. The amortization of the bond discount was recorded under the
-
history
Heather bought a ten-year maturity corporate bond when it was issued for $1,000. The bond has an annual interest rate of seven percent and pays interest semi-annually. How much does she receive every six months?
-
Mathematics
The city is issuing bonds to raise money for a building project. You obtain a $1700 bond that pays 5% interest annually that matures in 9 years. How much interest will you earn?
-
algebra
The annual salaries of all employees at a financial company are normally distributed with a mean = $34,000 and a standard deviation = $4,000. What is the z-score of a company employee who makes an annual salary of $28,000?
-
math
saving bond currently worth $7600 collects 5.5% annual simple interest each year. if the bond was purchased seven yeara ago, how much was it bought for?
-
finance
Suppose a zero-coupon bond is selling for $614.00 today. It promises to pay $1,000 in exactly 10 years with annual compounding. What is the firm’s after-tax cost of debt if this is its sole debt outstanding (assuming the firm is in the 20% tax bracket)?
Still need help?
You can ask a new question or browse existing questions.