Business, 27.11.2019 02:31 ayoismeisalex

Gmm co. plans to issue annual coupon bonds with 7.5% coupon rate to the public, maturing in 10 years. the face value of the bond is $1,000. you, as the cfo, want to decide how to set the price for the bond.
you notice that 2 years ago, your company issued a 15-year annual coupon bond with 8% coupon rate.
the current market price for the outstanding old bond is $950.

what is the fair price for the new 10-year annual coupon bond?

a. 1000

b. 924.70

c. 1024.70

d. 934.70

e. 1034.70

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 19:50

The u.s. stock market has returned an average of about 9% per year since 1900. this return works out to a real return (i.e., adjusted for inflation) of approximately 6% per year. if you invest $100,000 and you earn 6% a year on it, how much real purchasing power will you have in 30 years?

Answers: 2

Answer

Business, 22.06.2019 01:30

For each example identify the most appropriate ctso

Answers: 3

Answer

Business, 22.06.2019 20:20

Faldo corp sells on terms that allow customers 45 days to pay for merchandise. its sales last year were $325,000, and its year-end receivables were $60,000. if its dso is less than the 45-day credit period, then customers are paying on time. otherwise, they are paying late. by how much are customers paying early or late? base your answer on this equation: dso - credit period = days early or late, and use a 365-day year when calculating the dso. a positive answer indicates late payments, while a negative answer indicates early payments.a. 21.27b. 22.38c. 23.50d. 24.68e. 25.91b

Answers: 2

Answer

Business, 23.06.2019 02:30

Tara and her parents want to save at least $40,000 for college in 8 years. which statement describes the most effective savings plan for tara and her parents to meet their goal? tara and her parents should make deposits of $300 every month into a college savings account. tara and her parents should make deposits of $450 every month into a college savings account. tara and her parents should make deposits of $3,000 every year into a college savings account. tara and her parents should make deposits of $4,000 every year into a college savings account

Answers: 1

Answer

You know the right answer?

Gmm co. plans to issue annual coupon bonds with 7.5% coupon rate to the public, maturing in 10 years...

Questions