Business, 06.12.2019 01:31 baby092000

You are called in as a financial analyst to appraise the bonds of olsen’s clothing stores. the $1,000 par value bonds have a quoted annual interest rate of 12 percent, which is paid semiannually. the yield to maturity on the bonds is 12 percent annual interest. there are 10 years to maturity. use appendix b and appendix d for an approximate answer but calculate your final answer using the formula and financial calculator methods.
a. compute the price of the bonds based on semiannual analysis. (do not round intermediate calculations. round your final answer to 2 decimal places.)
b. with 5 years to maturity, if yield to maturity goes down substantially to 10 percent, what will be the new price of the bonds?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 08:00

Why do police officers get paid less than professional baseball players?

Answers: 2

Answer

Business, 22.06.2019 23:30

Which statement best describes the two reactions? abcl, + h2 → 2hci2h + h = he + inreaction a involves a greater change, and reaction b involves a change in element identity.reaction b involves a greater change and a change in element identityreaction a involves a greater change and a change in element identity.reaction b involves a greater change, and reaction a involves a change in element identity.

Answers: 1

Answer

Business, 23.06.2019 02:00

You are considering the purchase of one of two machines used in your manufacturing plant. machine 1 has a life of two years, costs $20,000 initially, and then $4,000 per year in maintenance costs. machine 2 costs $25,000 initially, has a life of three years, and requires $3,500 in annual maintenance costs. either machine must be replaced at the end of its life with an equivalent machine. using eac which is the better machine for the firm

Answers: 1

Answer

Business, 23.06.2019 10:00

The american dream includes home ownership. but in the last few years, it's gotten harder and harder to own a home. do you think home ownership is important to most americans today? why or why not?

Answers: 1

Answer

You know the right answer?

You are called in as a financial analyst to appraise the bonds of olsen’s clothing stores. the $1,00...

Questions

SAT, 04.08.2019 13:30

Which goal incorporates most of the criteria required for a smart goal?...

Business, 04.08.2019 13:30

The total assets of brandon co. are $900,000 and its liabilities are equal to one-fourth of its total assets. what is the amount of brandon co.'s stoc...