You have been offered a bond for $1250. The bond pays $60 semi-annual interest and will mature in 12 1/2 years. If the current market rate for a similar new bond investment is 8%

0 votes

You have been offered a bond for $1250. The bond pays $60 semi-annual interest and will mature in 12 1/2 years. If the current market rate for a similar new bond investment is 8%, is this a good price for the bond?

asked 12 years ago in Economics by anonymous

Need the solution FAST? Than SHARE this question: Tweet

1 Answer

Related questions

0 votes

0 answers

26. The spot rate is US$0.50 per Australian dollar. The annual interest rates are 12 percent for the United States and 8 percent for Australia. If these interest rates remain constant, then what is the US dollar market forecast of the spot rate for the Australian dollar in five years?

asked 12 years ago in Economics by anonymous

0 votes

0 answers

21. Assume: (1) the US annual interest rate = 10%; (2) the Malaysian annual interest rate = 4%; and (3) the 90-day forward rate for the Malaysian ringgit = $.3864. At what current spot rate will interest rate parity hold?

asked 12 years ago in Economics by anonymous

0 votes

0 answers

13. A multinational company is considering the establishment of a two-year project in Germany with a $8 million initial investment. The company's cost of capital is 12 percent. The required rate of return on this project is 18 percent. The project with no salvage value after two years is expected to generate net cash flows of 12 million euros in year 1 and 30 million euros in year 2. Assume no taxes and a stable exchange rate of $0.60 per euro. What is the net present value of the project in dollar terms?

asked 12 years ago in Economics by anonymous

0 votes

0 answers

21. If interest rates do not change over the next five years, what will be your annual net inflow?

asked 12 years ago in Economics by anonymous

0 votes

0 answers

22. Suppose annual inflation rates in the US and Cambodia are expected to be 5% and 90%, respectively over the next year. If the current spot rate for the Cambodian riel (KHR) is 3342.62 riels per dollar, then the best estimate of the riel's future spot rate one year from now is:

asked 12 years ago in Economics by anonymous