About the zero-coupon bond

Assignment Help Financial Management

Reference no: EM13922965

You purchased a zero-coupon bond one year ago for $283.33. The market interest rate is now 9 percent. Required: If the bond had 15 years to maturity when you originally purchased it, what was your total return for the past year? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Reference no: EM13922965

Questions Cloud

What inflation premium is built into five year bond yields : Crockett Corporation's 5-year bonds yield 6.35%, and 5-year T-bonds yield 4.75%. The real risk-free rate is r* = 3.50%, the default risk premium for Crockett's bonds is DRP = 1.00% versus zero for T-bonds, the liquidity premium on Crockett's bonds is..

What is intrinsic value of firm based on projected dividends : Whole Foods’ current dividend per share is $1.07. You expect dividends to grow at 5% per year into perpetuity. Whole Foods’ beta is 0.85. The current risk free rate is 2.9%, and the expected return on the market portfolio is 7.4%. what is the intrins..

Real cash flows must be discounted at a real discount rate : Real cash flows must be discounted at a real discount rate. (1 + real rate of interest) = (1 + nominal rate of interest)/(1 + inflation rate) The actual real rate of interest almost equals "nominal rate of interest - inflation rate." Inflation rate =..

About the sales increase : Pierce Furnishings generated $4 million in sales during 2012, and its year-end total assets were $2.6 million. Also, at year-end 2012, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,..

About the zero-coupon bond : You purchased a zero-coupon bond one year ago for $283.33. The market interest rate is now 9 percent. Required: If the bond had 15 years to maturity when you originally purchased it, what was your total return for the past year?

Regression and inventories : Charlie's Cycles Inc. has $90 million in sales. The company expects that its sales will increase 7% this year. Charlie's CFO uses a simple linear regression to forecast the company's inventory level for a given level of projected sales. What are your..

What is the duration if the yield to maturity : Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 6.7%. What is the duration if the yield to maturity is 10.7%?

About the excess capacity : Walter Industries has $7 billion in sales and $2.8 billion in fixed assets. Currently, the company's fixed assets are operating at 95% of capacity. What level of sales could Walter Industries have obtained if it had been operating at full capacity? W..

What is the depreciation tax shield : Fill in the missing numbers in the following income statement: What is the depreciation tax shield?

User Account

All Pages