Johnson Construction Inc. has issued 20-year $1,000 face value, 8% annual coupon bonds, with a yield to maturity of 10%. The current price of the bond is ________
A) $1,000.00
B) $1,196.36
C) $829.73
D) There is not enough information to answer this question.
Answer: C
Explanation: C)
Bond Price = PMT × +
= $80 × + = $829.73.
MODE = END
INPUT 20 10 ? -80 -1,000
KEY N I/Y PV PMT FV
CPT 829.73
You might also like to view...
When a follower disagrees with the direction of an organization, repeatedly makes her opinion know, and takes her questioning too far, she should ______.
a. give up and be quiet b. give up and be loyal c. continue making her opinion known until she is made the leader or fired d. have the courage to leave the organization
Grandma's Jellies Inc Grandma's Jellies Inc produces and distributes a variety of jellies. Two hundred jars of jelly are produced in a single batch. The following activities are performed per batch: Activity Hours Processing (two departments) 6 Inspecting 1 Moving (three moves) 3 Waiting (for the second process) 4 Storage (before delivery to the customer) 10 Refer to the Grandma's Jellies Inc
information above. The manufacturing cycle efficiency per batch is: A) 29.2%. B) 41.7%. C) 25.0%. D) 83.3%.
If Braum's calculates that it could sell up to 25% of all ice cream cones sold in the United States, this percentage would represent the ice cream marketer's
A. target growth rate. B. sales forecast. C. sales objective. D. company sales potential. E. market potential.
An advantage of the Enterprise Value-to-EBITDA model of valuation over the Price-Earnings Multiple model of valuation is that it does NOT focus on earnings
Indicate whether the statement is true or false