« 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 70 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?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

The effect of a double bond on the shape of fatty acids The effect of a double bond on the shape of fatty acids
A levallois core from Kapedo Tuffs, Kenya dates about 130,000 years ago. A levallois core from Kapedo Tuffs, Kenya dates about 130,000 years ago.
Different parts of the body mature at different rates. “General” refers to the body as a whole: the Different parts of the body mature at different rates. “General” refers to the body as a whole: the
Review Cognitive Changes over the Adult Years Review Cognitive Changes over the Adult Years
Top Prescriptions for Children Under 17 Years of Age (2002–2010) Top Prescriptions for Children Under 17 Years of Age (2002–2010)
Americium-243 has a decay constant of 9.39 × 10-5 years-1. How long will it take Americium-243 has a decay constant of 9.39 × 10-5 years-1. How long will it take
Video: Sperm Formation

For a complete list of videos, visit our video library