Corporate Finance Assignment/ Professional Essay Writers

Question 1

You have purchased a corporate bond with the settlement date on September 15with the face value of $1000 and the coupon rate 984%, which has a listed price of 98186 and that pays interest semiannually on February 15 and August 15 Accrued interest is determined using 30/360 convention.

How much must you pay for the bond?

Question 2

Mark purchased a corporate bond with the settlement date on October 15 with the face value of $1000 and the coupon rate 1182%, which has a listed price of 99034 and that pays interest semiannually on February 15 and August 15 Accrued interest is determined using actual/actual convention.

How much must Mark pay for the bond?

Question 3

Interest payments and bond prices are stated as percentages of par

• 1% or 1 point for a bond = $1000
• A 1/8 of a point for a bond = $125

Mrs. Smith owns a 5% bond; this means that she receives $50 per year in interest She paid a price of 113 ½ for the bond How much is this in dollars?

Question 4

Rose wants to buy a second home that will eventually become her retirement home and does not want a mortgage to finance this second home She plans to spend approximately $128,078 in 9 years on this purchase She has two zero-coupon bonds that mature in 9 years each with cash values of $1,54403 and face values of $2,500 In 9 years, she will use them as part of her $128,078.

What is Rose’s required monthly deposit at the beginning of each month in order to accumulate the $128,078 she needs to buy her home at an assumed interest rate of 1377% on her investment?  Get Finance Help Today