2.The current rate of a 30-year treasury bond is 4.85%. It pays a 4% coupon on a...

Fantastic news! We've Found the answer you've been seeking!

Question:

2.The current rate of a 30-year treasury bond is 4.85%. It pays a 4% coupon on a $100 face value, at the end of every six months. What is the price of this bond if it is issued today?

Related Book For answer-question

Corporate Finance

ISBN: 9781265533199

13th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

See More Books

Posted Date: Apr 16, 2024 07:52 AM

See More Questions

1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
Read and answer the question below. EMBRACE DEMOGRAPHICS AND SOCIETAL CHANGES Using Differences to Drive Value Force 7: Demographics and Societal Changes. One of the most important forces that is...
In an experiment that is designed to measure the Earths magnetic field using the Hall effect a copper bar 0.500 cm thick is positioned along an eastwest direction. If a current of 8.00 A in the...
Indicate true (T) or false (F), and for each false statement find real number replacements for a and b that will provide a counterexample. For all real numbers a and b, (A) a + b = b + a (B) a - b =...
Isabelle's Adjusted Gross Income ( AGI ) is $ 1 5 5 , 0 0 0 , which includes earnings from her collectible assets of $ 7 , 3 0 0 . She chooses to itemize her deductions when filing her taxes....
Discuss the types of discrimination that occur in the workplace.
Consider the following data regarding Orange Countys photocopying requirements. The county administrator is trying to decide whether to replace the old equipment. Because of rapid changes in...
A partial listing of accounts for Z Ltd. is shown below: Account Amount Accounts payable $36,000 Interest revenue $2,400 Accumulated depreciation - equipment $4,500 Salaries payable $2,300 Salaries...
Cinder Inc. is a Canadian-controlled private corporation based in your province. The company operates a wholesale business. The following information is provided for its year ended May 31, 2020: 1....
The following information is known about a project a. Draw the network diagram for this project b. Determine the critical path and project duration c. Calculate the slack for each activity. Activity...
Comprehensive Problem. Richard and Jennifer were married in 2009. They have a five-year-old child and a son born November 15, 2018. Richard's 67-year-old father lived in a nursing home until his...
Write a pseudocode procedure that allocates pages of memory on request. Assume that 100 pages of size 1 M byte, 2 M bytes, and 4 M bytes are available. The procedure should take the size of the page...
In 2018, Ollie Lingo and his wife have several endowment life insurance policies. On the first, which begins payment in 2019 , but was fully paid by 2010 , a dividend of $\$ 200$ is declared and...
Comprehensive Problem (Tax Return Problem). Harvey and Betty Duran, both age 37 , are married with one dependent child. Determine their taxable income from the following information for 2017, and...
Each of the following items must be considered in preparing a statement of cash flows (indirect method) for Granderson Inc. for the year ended December 31, 2015. (a) Plant assets that had cost 25,000...
Please respond to the following: From the e-Activity, assess the advantages and disadvantages of the continued use of the traditional relational database and then decide if businesses should be...
On January 1, 2017, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $340,200. Stinson's book value on that date consisted of common stock of $100,000 and...
A circular test track for cars in England has a circumference of 3.2 km. A car travels around the track from the southernmost point to the northernmost point. a. What distance does the car travel? b....
Loveland, Colorado, is 18 km due south of Fort Collins and 3 1 km due west of Greeley. What is the distance between Fort Collins and Greeley?
Blades of grass grow from the bottom, so, as growth occurs, the top of the blade moves upward. During the summer, when your lawn is growing quickly, estimate this speed, in m/s. Make this estimate...

2.The current rate of a 30-year treasury bond is 4.85%. It pays a 4% coupon on a...

Question:

Expert Answer:

Answer The current treasury rate 485 isnt directly needed to find the price of this specific ... View the full answer

Corporate Finance

Students also viewed these finance questions