subject
Mathematics, 30.07.2019 17:10 eraines1714

Suppose there is a bond in abc company that that pays coupons of 8.5%, and suppose that these coupons are paid annually.
suppose the face value of the abc bond is $1000 and the maturity is 11 years.
a) if the appropriate discount rate for this bond is 6%, what would you be willing to pay for abc’s bond?
b) if a comparable company, xyz, has a 7.0% coupon bond with a maturity of 9 years and a face value of 1000, and that bond is trading in the market for $994.50, what would you be willing to pay for abc’s bond?
c) suppose you find that the true fair value for abc bond is $1200.00, but you see that the bond trading for $1051.00, what would you recommend?

ansver
Answers: 2

Another question on Mathematics

question
Mathematics, 21.06.2019 16:40
If 24 people have the flu out of 360 people, how many would have the flu out of 900. choose many ways you could use proportion that david would use to solve this problem
Answers: 1
question
Mathematics, 21.06.2019 16:40
Find the solutions for a triangle with a =16, c =12, and b = 63º
Answers: 3
question
Mathematics, 22.06.2019 01:00
33 ! use the following data to determine the type of function (linear, quadratic, exponential) that best fits the data set. (1, 2) (5, 7) (9, 8) (3, 4) (4, 5) (2, 3)
Answers: 1
question
Mathematics, 22.06.2019 01:40
Given: prst square pmkd is a square pr = a, pd = a find the area of pmct.
Answers: 3
You know the right answer?
Suppose there is a bond in abc company that that pays coupons of 8.5%, and suppose that these coupon...
Questions
question
Mathematics, 03.11.2020 17:50
question
Mathematics, 03.11.2020 17:50
Questions on the website: 13722367