Question: Google inc has a 10 year fixed coupon bond with 8 years until maturity. 5% coupon rate paid annually. trading at price of 937.90. the

Google inc has a 10 year fixed coupon bond with 8 years until maturity. 5% coupon rate paid annually. trading at price of 937.90. the risk free rate is currently 1.5% what is the risk premium for this bond?

solution and steps pleeze

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Although airline schedules and cost are important factors for business travelers when choosing an airline carrier, a USA today survey found that business travelers list an air-lines frequent flyer...

Google has a 10 year fixed coupon bond with 8 yrs til maturity with a 5% coupon rate paid annually which is trading at a price of $937.90.The risk free rate is currently at 1.5%.What is the risk...

Use the following information for Questions 6 - 10: Table of Interest Rates: Consider the following bond: - Exactly 3 years to maturity - 7% coupon rate, paid annually - \$100 par value - Bond is...

a fixed coupon bond with 20 years to maturity has a coupon rate of 8.5%, with payments made annually. what is the price the company would expect to see for this bond if it expects the yield to be 9%?...

3 4 ASSIGNMENT 5 Enter Answers Correct Answers Below Below 6 (10 Points Total) Q1) A $1,000 par value bond that pays interest annually just paid $77 in interest. What is the coupon rate? (1 point)...

1- Assuming semiannual compounding, what is the price of a zero coupon bond with 8 years to maturity paying $1,000 at maturity if the YTM is (Do not round intermediate calculations and round your...

Enter Answers Corre Below Below (10 Points Total) Q1) A $1,000 par value bond that pays interest annually just paid $88 in interest. What is the coupon rate? (1 point) Q2) A 07.20% coupon, 3-year...

QUESTION 22 A fixed coupon bond with a years untii maturity and a coupon rate of or paid annually is currently trading at a yield of BM. Answer the following using the assumption of a 51.000 Face...

A fixed coupon bond with 3 years until maturity and a coupon rate of 6% paid annually is currently trading at a yield of 8%. Answer the following using the assumption of a $1,000 Face Value (in other...

Delta has both equity and debt used to finance itself. Delta's Beta has been calculated as 1 . 5 . The average return of the market has been 1 3 % and the risk - free rate is 1 % . Delta also has a 3...

The estimated amount of depreciation on equipment for the current year is $5,500. Journalize the adjusting entry to record the depreciation.

On September 15, 2019, Keefer Company (U.S) received an order to sell and shipped a machine to a customer in Canada at a price of 100,000 U.S dollars and payment was received on January 1, 2020...

1218. A particle is moving along a straight line with an initial velocity of 6 m>s when it is subjected to a deceleration of a = (-1.5v1>2) m>s2, where v is in m>s. Determine how far it travels...

A buffer solution is 0.356 M in H 2 SO 3 and 0.217 M in NAHSO 3 . If Ka1 for H 2 SO 3 is 1.7x10-2 , what is the pH of this buffer solution?

7. % change in real income = % change in nominal income minus ................................ *

How many grams of solid ammonium bromide should be added to 1.00 L of a 0.120 M ammonia solution to prepare a buffer with a pH of 8.710 ? grams ammonium bromide = g.

23. Which of the following would cause a bank to lose reserves? * One of the banks depositors makes an internet payment to another of its depositors. One of the bank\\\'s depositors pays out a cheque...

25. Suppose the Bank of Zambia is concerned about inflation and wishes to raise interest rates. Which of the following instruments would it be inappropriate to use? * Reserve ratio controls...

Create a 200 word summary on the Juvenile Justice System than and today. Describe The Juvenile system and provide a generalizable definition. Highlight the issues in the Juvenile system and why this...

T F Based on the Fair Labor Standards Act, employees are classified as either exempt or nonexempt.

T F The most highly valued employee benefit is a pension plan.

T F With a progressive approach, discipline is incremental and increasingly forceful.