« 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 66 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?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Annual Water Use in the United States Annual Water Use in the United States
Model of a sequential study in which two cohorts were followed beginning at age 20. One cohort was f Model of a sequential study in which two cohorts were followed beginning at age 20. One cohort was f
Hydrogen Bond Hydrogen Bond
Earth’s Oldest Preserved Rocks – 3.8 Billion Years Old, Greenland Earth’s Oldest Preserved Rocks – 3.8 Billion Years Old, Greenland
Earth 240 Million Years Ago Earth 240 Million Years Ago
Tracing numbers and alphabets by nat 3 years old Tracing numbers and alphabets by nat 3 years old
Video: Febrile Seizure

For a complete list of videos, visit our video library