Using the Colby bonds in the preceding question, what is the present value of the bonds if

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

Question:

Using the Colby bonds in the preceding question, what is the present value of the bonds if they are “called” in 5 years at 110% of par value?

A. $1,056
B. $1,072
C. $1,149
D. $1,128

please double check work previous question : Colby bonds pay annual interest of $140. They mature in 10 years and have a par value of $1,000. The required rate of interest is 12%.

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259277160

16th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

See More Books

Posted Date: Jan 21, 2022 02:37 AM

See More Questions

What is the present value of the following uneven cash flow stream? The appropriate interest rate is 10%, compoundedannually. 1 4 years 300 100 300 -50 2.
What is the present value of $800 to be received at the end of one year if it must provide a return of 8%? What is the present value of $900 to be received at the end of one year? $1,500? What can...
What is the present value of $1,000 to be received at the end of one year if it must provide a return of 5%? What is the present value of $1,000 to be received at the end of two years? Three years?...
Solve: [1+ log (xy)] dx + [ 1 + x/y ]dy = 0.
Entre Preneur found a site for his new haute cuisine restaurant. The site has a vacant gasoline station. He purchased the property for $ 900,000 and had the station demolished at a cost of $ 30,000....
Is UTC pursuing evolutionary or revolutionary change or both?
Research the programming language XBRL and write a two-page report about its effect on financial reporting via the Internet.
Today the common stock of Gresham Technology closed at $24.60 per share, down $0.35 from yesterday. If the company has 4.6 million shares outstanding and annual earnings of $11.2 million, what is its...
Develop the three stages of your healthcare management strategic plan which is situational analysis, strategy formulation and implementation planning. provide a sample of each from a hospital POV.
What is the total number of missing checks in the sequence listed in the Cash Disbursements database? (Please select the choice that represents all possible correct answers.) b. How many duplicate...
on boarding education What theories, models, and/or frameworks would be useful in your project implementation? Describe them. Identify leadership strategies that are critical and effective to the...
Make an income statement and balance sheet with the following information. Estimated Sales for the month=$17,461.07 Estimated Sales Lipsticks (210 units at $6.32 each)=$1,327.20 Lip glosses (189...
Draw the physical system and show the direction of transport, and fluxes, along with the coordinate system. b. Identify your differential volume and the IN, OUT, ACCUMALATION, SOURCE, SINK terms. c....
Demonstrate that you have an understanding of the basics in Google Analytics. Please answer each of the following questions below. Some answers require that you paste a screenshot into this document....
Describe the three main characteristics/roles for money. Describe how these three roles are either independent or interdependent. The Federal Reserve pursues "stable prices" when conducting monetary...
How is this done in excel and also on a financial calculator? Bank of America has an issue of preferred stock with a $5 stated dividend that trades for $92 per share. What is the bank's cost of...
chance to see the rich and overwhelming world that gave a background to the universal earthenware fighters. It ought not be missed.
State whether each statement is true or false. If false, give a reason. {purple, green, yellow} = {green, pink, yellow}
Lemon Auto Wholesalers had sales of $1,000,000 last year and cost of goods sold represented 78 percent of sales. Selling and administrative expenses were 12 percent of sales. Depreciation expense was...
The Bradley Corporation produces a product with the following costs as of July 1, 20X1: Material.....................$4 per unit Labor......................... 4 per unit Overhead...
How is the present value of a single sum (Appendix B) related to the present value of an annuity (Appendix D)?
What is the usual liability of stockholders for corporation actions? a. Unlimited b. Limited to the par value or stated value of the shares of stock they hold c. Limited to the amount of their...
Which type of stock may have dividends in arrears? a. Cumulative preferred stock b. Common stock c. Noncumulative preferred stock d. Treasury stock
Wyler Company issued 20,000 shares of $\$ 10$ par value common stock in exchange for a building with a current fair value of $\$ 1,000,000$. In recording this transaction, what amount should be...

Using the Colby bonds in the preceding question, what is the present value of the bonds if

Question:

Expert Answer:

A B 1 Face value FV 2 Coupon rate 3 Number of compounding periods per year 1100 2 1400 ... View the full answer

Foundations of Financial Management

Students also viewed these accounting questions