subject
Business, 23.12.2021 01:50 jacobbrandon2002

if there are two $1,000 bonds that pay semi-annual coupons, one with a 30-year maturity and the other with a 10-year maturity and both with a coupon rate of 10%, what will happen to their values if market interest rates fall to 8%?

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 06:40
Burke enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. after 11 years, the company can sell the parts for $5 billion. burke has a target debt/equity ratio of 1.2, a beta of 1.79. you estimate that the return on the market is 7.5% and t-bills are currently yielding 2.5%. burke has two issuances of bonds outstanding. the first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. the second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. kate, the ceo, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. should the company take on the project?
Answers: 1
question
Business, 23.06.2019 00:00
How much is a 2019 tesla? ? exact price trying to buy for my 6 year old sister
Answers: 2
question
Business, 23.06.2019 12:00
Michael works in an it firm that is well known for making innovative products. michael is asked to develop a product that would serve an unmet need. though he has many ideas for it, none of them quite fits the bill. he finally decides to stand back from the problem for a period of time and ceases to consciously think about the yet-to-be-developed product. after a week, as he looks over his notes, he realizes the solution. the period of time in which michael did not consciously work on the problem is referred to as
Answers: 1
question
Business, 23.06.2019 15:00
Construct an example of the cycle of​ money, identify all the players involved and identify their individual benefits from participating in the cycle of money. in the examples of the cycle of money shown​ below, identify all the players involved and identify their individual benefits from participating in the cycle of money. example​ one: ​(select from the​ drop-down menus.) ▾ opens a savings account ▾ with the borrower with the original lender at a local commercial bank with a​ $200 deposit. the ▾ original lender bank borrower loans out the​ $200 with other funds from other savings accounts to ▾ the original lender a local businessman who is expanding his business. the local businessman pays back the loan over time with interest and the bank credits the savings account with interest. the individual withdraws money from the savings account to buy a new bike.
Answers: 1
You know the right answer?
if there are two $1,000 bonds that pay semi-annual coupons, one with a 30-year maturity and the othe...
Questions
question
Mathematics, 23.03.2021 02:50
question
Mathematics, 23.03.2021 02:50
question
Mathematics, 23.03.2021 02:50
question
History, 23.03.2021 02:50
question
Mathematics, 23.03.2021 02:50
question
Mathematics, 23.03.2021 02:50
Questions on the website: 13722363