Fin 3403 assignment 8 | Business & Finance homework help

Don't use plagiarized sources. Get Your Assignment on
Fin 3403 assignment 8 | Business & Finance homework help
Just from $13/Page
Order Now

Fin 3403 Assignment 8

1. Bond price: Pierre Dupont just received a gift from his grandfather. He plans to invest in a five-year bond issued by Venice Corp. that pays annual coupons of 4.89 percent. If the current market rate is 8.40 percent, the maximum amount Pierre should be willing to pay for this bond is $

 

2. Zero coupon bonds: Northrop Real Estate Company is planning to fund a development project by issuing 10-year zero coupon bonds with a face value of $1,000. Assuming the appropriate discount rate is 15.79 percent and semiannual compounding, the price of these bonds is $

 

3. Zero coupon bonds: Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 10.48 percent, the value of these bonds are

 

4. Yield to maturity: Ruth Hornsby is looking to invest in a three-year bond that pays semiannual coupons at a coupon rate of 11.39 percent. If these bonds have a market price of $940.88, the yield to maturity is___% and the effective annual yield is___%

 

5. Zero coupon bonds: Diane Carter is interested in buying a five-year zero coupon bond whose face value is $1,000. She understands that the market interest rate for similar investments is 9.51 percent. Assuming annual compounding, the current price of this bond is $

 

6. Bond price: BA Corp is issuing a 10-year bond with a coupon rate of 6.71 percent. The interest rate for similar bonds is currently 4.83 percent. Assuming annual payments, value of the bond is $

 

7. Zero coupon bonds: Kintel, Inc., wants to raise $1 million by issuing six-year zero coupon bonds with a face value of $1,000. Their investment banker informs them that investors would use an 9.26 percent discount rate on such bonds. At this discount rate the bonds would sell for $ __ (*), and the firm would have to issue ____(**) shares in order to raise $1 million. Assume semi-annual compounding for payments.

 

(*)(Round your answer to 2 decimal places.)(**)(Round your answer to 0 decimal places.)(All intermittent calculations should be rounded to 4 decimal places before carrying to next calculation.)

 

8. Yield to maturity: Electrolex, Inc., has four-year bonds outstanding that pay a coupon rate of 11.61 percent semiannually. If these bonds are currently selling at $947.05, the yield to maturity that an investor can expect to earn on these bonds is ____% and the effective annual yield is ___%

 

9. Yield to maturity: Adrienne Dawson is planning to buy 10-year zero coupon bonds issued by the U.S. Treasury. If these bonds with a face value of $1,000 are currently selling at $615.05, the Effective Annual Yield on these bonds is ___%. (Assume that interest compounds semiannually on similar coupon-paying bonds.)

 

10. Bond price: The International Publishing Group is raising $10 million by issuing 15-year bonds with a coupon rate of 10.73 percent. Coupon payments will be annual. Investors buying the bond currently will earn a yield to maturity of 9.49 percent. The bonds would sell for $ ___ in the marketplace?

 

11. Bond price: Marshall Company is issuing eight-year bonds with a coupon rate of 6.16 percent and semiannual coupon payments. If the current market rate for similar bonds is 9.35 percent, the bonds will sell for $____(*). If the company wants to raise $1.25 million, the firm must sell ____(**) bonds.

(*)(Round your answer to 2 decimal places.)(**)(Round your answer to 0 decimal places.)(All intermittent calculations should be rounded to 4 decimal places before carrying to next calculation.)

12. Bond price: Rockne, Inc., has 15-year bonds that will mature in six years and pay an 8 percent coupon, interest being paid semiannually. If your required rate of return is 6.27 percent, the value of the bond today is $ ___. If you paid $1,053.61 you received a? Good, bad, or fail deal?

 

13. Bond price: Pullman Corp issued 10-year bonds four years ago with a coupon rate of 10.18 percent, paid semiannually. At the time of issue, the bonds sold at par. Today, bonds of similar risk and maturity will pay a coupon rate of 7.51 percent. The current market price of the firm’s bonds is $ ____?

 

(Round your answer to 2 decimal places. All intermittent calculations should be rounded to 4 decimal places before carrying to next calculation.)

 

14.     Zero coupon bonds: Rockinghouse Corp. plans to issue seven-year zero coupon bonds. It has learned that these bonds will sell today at a price of $369.37. Assuming annual coupon payments, the yield to maturity on these bonds is ___%?

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

At Myhomeworkwriters.com, we always aim at 100% customer satisfaction. As such, we never compromise o the quality of our homework services. Our homework helpers ensure that they craft each paper carefully to match the requirements of the instruction form.

Professional Academic Writers

With Myhomeworkwriters.com, every student is guaranteed high-quality, professionally written papers. We ensure that we hire individuals with high academic qualifications who can maintain our quality policy. These writers undergo further training to sharpen their writing skills, making them more competent in writing academic papers.

Affordable Prices

Our company maintains a fair pricing system for all academic writing services to ensure affordability. Our pricing system generates quotations based on the properties of individual papers.

On-Time delivery

My Homework Writers guarantees all students of swift delivery of papers. We understand that time is an essential factor in the academic world. Therefore, we ensure that we deliver the paper on or before the agreed date to give students ample time for reviewing.

100% Originality

Myhomeworkwriters.com maintains a zero-plagiarism policy in all papers. As such, My Homework Writers professional academic writers ensure that they use the students’ instructions to deliver plagiarism-free papers. We are very keen on avoiding any chance of similarities with previous papers.

Customer Support 24/7

Our customer support works around the clock to provide students with assistance or guidance at any time of the day. Students can always communicate with us through our live chat system or our email and receive instant responses. Feel free to contact us via the Chat window or support email: support@myhomeworkwriters.com.

Try it now!

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Homework Writing Services

My Homework Writers holds a reputation for being a platform that provides high-quality homework writing services. All you need to do is provide us with all the necessary requirements of the paper and wait for quality results.

Essays

Essay Writing Services

At My Homework Writers, we have highly qualified academic gurus who will offer great assistance towards completing your essays. Our homework writing service providers are well-versed with all the aspects of developing high-quality and relevant essays.

Admissions

Admission and Business Papers

With Myhomeworkwriters.com, we will help you secure a position at your desired institution. Our essay writing services include the crafting of admissions papers. We will still help you climb your career ladder by helping you write the official papers that will help you secure a job. We will guide you on how to write an outstanding portfolio or resume.

Editing

Editing and Proofreading

Myhomeworkwriters.com has a professional editorial team that will help you organize your paper, paraphrase it, and eliminate any possible mistakes. Also, we will help you check on plagiarism to ensure that your final paper posses quality and originality.

Coursework

Technical papers

My Homework Writers harbors professional academic writers from diverse academic disciplines. As such, we can develop homework writing services in all academic areas. The simplicity or complexity of the paper does not affect the quality of homework writing services.