« 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 22 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?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Annual Water Use in the United States Annual Water Use in the United States
A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan
An overlapping record extends back thousands of years of tree ring width An overlapping record extends back thousands of years of tree ring width
Approximately 40 percent of farmers in the United States are 55 years old or older Approximately 40 percent of farmers in the United States are 55 years old or older
Hydrogen Bond with Peptide Hydrogen Bond with Peptide
A $50 000 bond bearing interest at 6.5% bond payable semi-annually matures in 10 years. If it ... A $50 000 bond bearing interest at 6.5% bond payable semi-annually matures in 10 years. If it ...
Video: Introduction to Sleep Apnea

For a complete list of videos, visit our video library