« previous next »

Author Question: The value of a bond is inversely related to changes in the investor's present required rate of ... (Read 146 times)

Anajune7

  • Hero Member
  • *****
  • Posts: 574
on: Jul 10, 2018
The value of a bond is inversely related to changes in the investor's present required rate of return.
 
  Indicate whether the statement is true or false

Question 2

With a 10 discount rate, the present value factor of 1 received 10 years from now is 0.386. The present value of a 1 annuity factor for 10 years is 6.145.
 
  Given these values, the present value of a 1,000 (par), 10-year corporate bond with a 12 coupon rate is
  A)
 
  6,191.32.
  B)
 
  1,586.00.
  C)
 
  1,123.40.
  D)
 
  1,000.50
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


lolol

  • Sr. Member
  • ****
  • Posts: 330
Reply #1 on: Jul 10, 2018
Answer to Question 1

TRUE

Answer to Question 2

C


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
TY


lolol

  • Sr. Member
  • ****
  • Posts: 330
Reply #3 on: Jul 10, 2018
Happy to Help


« previous next »
 

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Triangle plot showing gene expression related to xylem, phloem, and nonvascular tissue in Arabidopsi Triangle plot showing gene expression related to xylem, phloem, and nonvascular tissue in Arabidopsi
Procedures for Diagnostic Tests Related to the Musculoskeletal system Procedures for Diagnostic Tests Related to the Musculoskeletal system
Procedures and Diagnostic Tests Related to the Female Reproductive System Procedures and Diagnostic Tests Related to the Female Reproductive System
Catalysis of peptide bond hydrolysis by chymotrypsin (part 1) Catalysis of peptide bond hydrolysis by chymotrypsin (part 1)
Comparison of C-C bond cleavage in transketolase and transaldolase reactions Comparison of C-C bond cleavage in transketolase and transaldolase reactions
How to solve rate problems leading to fractional equations (Question 3) How to solve rate problems leading to fractional equations (Question 3)
Video: Corpus Callosum Animation

For a complete list of videos, visit our video library