VIEWS: 60 PAGES: 2 CATEGORY: Essays POSTED ON: 3/16/2010
Calculation of Profitability Index. : A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 12%. What is the project’s PI?
Sub: Finance Topic: Bond Valuation Question: Calculation of current price of the bond. ClassOf1 provides expert guidance to College, Graduate, and High school students on homework and assignment problems in Math, Sciences, Finance, Marketing, Statistics, Economics, Engineering, and many other subjects. DAH, Inc. has issued a 12% bond that is to mature in 9 years. The bond had a $1,000 par value and interest is due to be paid semi-annually. If your required rate of return is 10%, what price would you be willing to pay for the bond? Solution: Since the coupon payment is semiannual, so n = Years to Maturity * 2 Particulars Amount Number of coupon payments (n) 18
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