« previous next »

Author Question: GAT, Inc. has issued a 1,000 par 4 annual coupon bond that is to mature in 18 years. If your ... (Read 79 times)

Anajune7

  • Hero Member
  • *****
  • Posts: 574
on: Jul 10, 2018
GAT, Inc. has issued a 1,000 par 4 annual coupon bond that is to mature in 18 years. If your required rate of
  return is 6.5, what price would you be willing to pay for the bond?
 
  What will be an ideal response?

Question 2

A project's net present value profile shows how sensitive the project is to the choice of a discount
  rate.
 
  Indicate whether the statement is true or false
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


briseldagonzales

  • Sr. Member
  • ****
  • Posts: 303
Reply #1 on: Jul 10, 2018
Answer to Question 1

739.19 from Excel PV function with Rate = .065, Nper = 18, Pmt = 40, Fv = 1000, and Type = 0

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

Anajune7

  • Hero Member
  • *****
  • Posts: 574
Reply #2 on: Jul 10, 2018
Thank you


briseldagonzales

  • Sr. Member
  • ****
  • Posts: 303
Reply #3 on: Jul 10, 2018
No problemo


« previous next »
 

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

Everyone has one nostril that is larger than the other.

Ionic Bond Ionic Bond
The skullcap from Trinil, Java is the type specimen for H. erectus and is about 900,000 years old. The skullcap from Trinil, Java is the type specimen for H. erectus and is about 900,000 years old.
(a) The site of Zhoukoudian outside of Beijing, China, spans several hundred thousand years and (b) (a) The site of Zhoukoudian outside of Beijing, China, spans several hundred thousand years and (b)
The Long Valley Caldera Erupted the Bishop Ash 760,000 Years Ago The Long Valley Caldera Erupted the Bishop Ash 760,000 Years Ago
Annual Earthquake Occurrence Annual Earthquake Occurrence
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Video: Introduction to Diabetes

For a complete list of videos, visit our video library