if a bond is discounted, then
if a bond is discounted, then
Homework Answers
If a bond becomes discounted i.e., decreases in price, it
implies that the coupon rate is less than current yields.
Or, Price is less than Par or Face Value
Or, Yield to maturity is more than coupon rate
buy the Bond will have made a wise choice because discounted cash flow method, the unted...
buy the Bond will have made a wise choice because discounted cash flow method, the unted cash flows would be greater than the face value of the bond of $50.000.000 counted cash flows will be equal to the face value of the Bond of 550.000.000, h ly ensuring no loss discounted cash flows will be below the face value of the investment making it a bargain purchase None of the above. Most traded Bonds are sold in multiples of $1000...
Determine the discounted value of an investment with maturity value of $12,000, if it is discounted...
Determine the discounted value of an investment with maturity value of $12,000, if it is discounted 5 years before maturity at 8% compounded quarterly. Select one: a. $8590.48 b. $8075.66 c. $8384.39 d. $8129.37 e. $8152.69
Discounted payback period) Assuming an appropriate discount rate of 11 percent, what is the discounted payback...
Discounted payback period) Assuming an appropriate discount rate of 11 percent, what is the discounted payback period on a project with an initial outlay of $100,000 and the following cash flows? Year 1 $30,000 Year 2 $35,000 Year 3 $25,000 Year 4 $25,000 Year 5 $30,000 Year 6 $20,000 The project's discounted payback period is years. (Round to two decimal places.)
how would you define concept of discounted-cash-flow analysis? What are the two common methods of discounted...
how would you define concept of discounted-cash-flow analysis? What are the two common methods of discounted cash-flow analysis?
A variant of the regular payback is the discounted payback. Unlike regular payback, the discounted payback...
A variant of the regular payback is the discounted payback. Unlike regular payback, the discounted payback considers -Select costs. However, the discounted payback still disregards cash flowsSelect the payback year. In addition, there is no spedfic payback rule to justify project acceptance. Both methods provide information about Select and risk. Quantitative Problem: Bellinger Industries is considering two projects for indlusion in its capital budget, and you have been asked to do the analysis. Both projects after-tax cash flows are shown...
project's appropriate discount rate is 12 percent, what is the proces discounted payback period (Discounted Payback...
project's appropriate discount rate is 12 percent, what is the proces discounted payback period (Discounted Payback periodies Restaurants is considering project with the following expected cash flows The projects discounted payback period is yours (Round to be decimal places) 1 Data Table PROJECT CASH FLOW - $20 million 80 milion 65 milion 80 millon 95 m. (Click on the concated on the h ome of the data above in order to conten t Print Done
(5 pts) 25. The present value of the following cash flow stream is $5,933.86 when discounted...
(5 pts) 25. The present value of the following cash flow stream is $5,933.86 when discounted at 11 percent annually. What is the value of the missing cash flow? Year $2,000 1,750 1,250 4 Problems 9 and 10 are connected. 9. A major car manufacturing firm issues a 20 year $1,000,000 bond at par. The bond pays a 6% (APR) semiannual coupon. 5 years later, the Federal Reserve Board cuts the fed funds rate, causing interest rates for similar firms...
Which one of these statements related to discounted payback is correct? Multiple Choice Payback is a...
Which one of these statements related to discounted payback is correct? Multiple Choice Payback is a better method of analysis than discounted payback. Discounted payback is used more frequently in business than payback. Discounted payback does not require a cutoff point. Discounted payback is biased towards short-term projects The discounted payback period increases as the discount rate decreases.
backpack discounted 10% on sale for $37.80
backpack discounted 10% on sale for $37.80
15. Which of the following is CORRECT about the arbitrage-free price of a coupon bond? The...
15. Which of the following is CORRECT about the arbitrage-free price of a coupon bond? The sum arbitrage-free price of a coupon bond. The coupon of the present value of all cash flows (discounted at the required yield) is the A. B. C. The the present value of all cash flows (discounted at the spot rate of the bond's final term to maturity) is the arbitrage-free price of a coupon bond. of the present value of all cash flows (discounted...
buy the Bond will have made a wise choice because discounted cash flow method, the unted cash flows would be greater than the face value of the bond of $50.000.000 counted cash flows will be equal to the face value of the Bond of 550.000.000, h ly ensuring no loss discounted cash flows will be below the face value of the investment making it a bargain purchase None of the above. Most traded Bonds are sold in multiples of $1000...
Discounted payback period) Assuming an appropriate discount rate of 11 percent, what is the discounted payback period on a project with an initial outlay of $100,000 and the following cash flows? Year 1 $30,000 Year 2 $35,000 Year 3 $25,000 Year 4 $25,000 Year 5 $30,000 Year 6 $20,000 The project's discounted payback period is years. (Round to two decimal places.)
A variant of the regular payback is the discounted payback. Unlike regular payback, the discounted payback considers -Select costs. However, the discounted payback still disregards cash flowsSelect the payback year. In addition, there is no spedfic payback rule to justify project acceptance. Both methods provide information about Select and risk. Quantitative Problem: Bellinger Industries is considering two projects for indlusion in its capital budget, and you have been asked to do the analysis. Both projects after-tax cash flows are shown...
project's appropriate discount rate is 12 percent, what is the proces discounted payback period (Discounted Payback periodies Restaurants is considering project with the following expected cash flows The projects discounted payback period is yours (Round to be decimal places) 1 Data Table PROJECT CASH FLOW - $20 million 80 milion 65 milion 80 millon 95 m. (Click on the concated on the h ome of the data above in order to conten t Print Done
(5 pts) 25. The present value of the following cash flow stream is $5,933.86 when discounted at 11 percent annually. What is the value of the missing cash flow? Year $2,000 1,750 1,250 4 Problems 9 and 10 are connected. 9. A major car manufacturing firm issues a 20 year $1,000,000 bond at par. The bond pays a 6% (APR) semiannual coupon. 5 years later, the Federal Reserve Board cuts the fed funds rate, causing interest rates for similar firms...
Which one of these statements related to discounted payback is correct? Multiple Choice Payback is a better method of analysis than discounted payback. Discounted payback is used more frequently in business than payback. Discounted payback does not require a cutoff point. Discounted payback is biased towards short-term projects The discounted payback period increases as the discount rate decreases.
15. Which of the following is CORRECT about the arbitrage-free price of a coupon bond? The sum arbitrage-free price of a coupon bond. The coupon of the present value of all cash flows (discounted at the required yield) is the A. B. C. The the present value of all cash flows (discounted at the spot rate of the bond's final term to maturity) is the arbitrage-free price of a coupon bond. of the present value of all cash flows (discounted...
Most questions answered within 3 hours.
-
Calculate the wavelength of light (in nanometers) emitted from a
hydrogen atom if the electron is...
asked 3 minutes ago -
Please answer in Python 3! 16.2** (Maximum increasingly ordered
subsequence) Write a program that prompts the...
asked 7 minutes ago -
Energy is carried by which of the following waves?
(Select all that apply)
a) light wave...
asked 7 minutes ago -
(Part 1) An investor wants to have $1,000,000 when she retires
in 20 years. If she...
asked 8 minutes ago -
ESP8266/Arduino UNO and temperature sensor MCP9700A.
Temperature sensor gives incorrect temperature readings in
celsius.
Both ESP8266...
asked 9 minutes ago -
1. Why has Dunkin’ Donuts increased its focus on
coffee?
2. Describe the strategy that Dunkin’...
asked 18 minutes ago -
two lady bugs sit on a rotating disk without slipping. lady bug
1 is half away...
asked 22 minutes ago -
Core Concepts of Accounting Information Systems
Discussion Question #4
Does a company have the right to...
asked 27 minutes ago -
Why does the Solow model cannot explain growth in the long run?
What is the role...
asked 30 minutes ago -
Question 8 Interactive LearningWare 26.2 offers a review of the
concepts that play roles in this...
asked 34 minutes ago -
draw product of cyclohex-2-en-1-one, Sodium methoxide and
hydronium workup
asked 42 minutes ago -
In a certain state, about 65% of drivers who are arrested for
driving while intoxicated (DWI)...
asked 43 minutes ago