Financial Management Problem case study

FN 215 Financial Management

Problem Set # 7

Rules for all problem sets:

Do your own work. Do not copy material from others.

Problem sets must be submitted in hard copy form. Do not submit electronically.


Answer all 5 questions.



Question 1

You are analyzing a bond with the following characteristics.

Par value $1,500 Annual coupon 4.95%, interest payable annually

Yield-to-maturity 7.50% annually

Bond was issued 3 years ago; it matures 17 years from today.

Calculate this bonds current price using the calculator method. If you use a financial calculator, show keystrokes. If you use a regular calculator, show the equations. Round to nearest dollar.



Question 2

From Question 1, . Round to nearest penny. Report the amount in good form (i.e., appropriate dollar sign and cents). You must print out and formulas.


Question 3

Recalculate the bond price from Question 1 data, but interest is payable monthly. ONLY. Round to nearest penny. Report the amount in good form. Again, print out Excel spreadsheet results and formulas.



Question 4

Is the bond in Question 1 priced at premium or discount? Explain.


Question 5

Using Excel ONLY, determine present values for each of the following problems. Attach print-out with answers in good form and the formulas. Round to nearest dollar.

A.$1.0 million per year; cash flows atbeginningof the year; discount rate 4.5%, 20 years

B.$25,000 received at the end of Year 30, discount rate 3.25%

C.$50,000 per year for 10 years; $200,000 cash flow at the end of 10 years; discount rate 6.4%

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.
  +1 718 717 2861           + 44 161 818 7126           [email protected]
  +1 718 717 2861         [email protected]