Annualized realized compound yield on the bond

Assignment Help Finance Basics
Reference no: EM132070096

Four years ago, you purchased a bond for $1,011.21. The bond had four years to maturity, a coupon rate of 8.9%, paid annually, and a face value of $1,000. Each year you reinvested all coupon interest at the prevailing reinvestment rate shown in the table below. Today is the bond's maturity date. What is your annualized realized compound yield on the bond?

Reference no: EM132070096

Questions Cloud

How much would you pay for the bond : Approximately how much would you pay for the bond if the market return on similar bonds is 10%?
What is its value today : This account has been earning interest at a compound rate of 7%. What is its value today?
What is the operating cash flow : Cost normally runs 70 percent of sales. The depreciation exp will be 80$ and the tax rate is 34 percent. What is the operating cash flow
Prepare comprehensive proposal based on an original concept : original concept - prepare a comprehensive proposal based on an original concept. Ethically, you may not reuse a project prepared for a prior course
Annualized realized compound yield on the bond : Today is the bond's maturity date. What is your annualized realized compound yield on the bond?
Calculate how many shares will be repurchased : Please help me understand the steps to take to calculate how many shares will be repurchased?
Change in the dividend policy : Based on an income statement, a balance sheet and a statement of cash flows, how will I know if a change in the dividend policy will be necessary?
Expected rate of return on the investment : If the expected rate of return on the investment is 12%, and the hospital invests at the end of each year?
What would be the investor return : If an investor offers you $500,000 for 70% of the business, what would be the investor's return?

Reviews

Write a Review

Finance Basics Questions & Answers

  Hhow much will recievables balance increase what would be

the new credit manager of kays dpartment store plans to liberalize the firms credit policy.the firm currently

  What is the current share price in given situation

Far Side Corporation is expected to pay the following dividends over the next four years: $15, $11, $6, and $1. Afterward, the company pledges to maintain.

  Explain the difference in rankings

Explain the difference in rankings. Which investment would you recommend? Rank these investment proposals using the payback period, the accounting rate of return on initial investment, and the net present value criteria.

  Estimate the division value using the dcf approach

Eastman Kodak's health division has a debt ratio of .20 and a debt cost of 7.5%. The company has a tax rate of .40 and the T-Bond rate is 7%.

  What is the monthly mortgage payment

You purchased a house for dollar 150,000.00. The mortgage is for 30 years with equal monthly payment at a monthly interest rate of 3/4 percentage.

  Describe the three products of accounting

Personal Finance question. What is accounting and how does it help you manage your personal finances? Describe the three products of accounting and bookkeeping.

  Determine expected future stream of dividends

In 1965, Warren Buffett get control of a New England textile business called Berkshire Hathaway for about $10 per share. Today the stock sells for around $135,000 a share and Mr. Buffett is the 2nd richest person in America.

  Prepare a revised budget

Incremental Analysis Consider the production cost information for Santiago's Salsa in problem 1. The corporation is currently producing and selling 250,000 jars of salsa yearly.

  How does the federal reserve increase the money supply

Explain the major factors that influence interest rates and describe the effects interest rate factors have on the residential mortgage market.

  Demonstrate the invalidity of argument

Demonstrate the invalidity of this argument by describing two ways that a decrease in pH caused by acid deposition can harm organisms living in an aquatic.

  Calculate the present value of the given cash flow pattern

You have been offered the opportunity to invest in a project that will pay $2,819 per year at the end of years one through three and $12,061.

  Calculate the npv for the following capital budgeting

calculate the npv for the following capital budgeting proposal 100000 initial cost to be depreciated straight-line over

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd