Bonds-yield capital gain and loss

Assignment Help Accounting Basics

Reference no: EM13116096

Suppose you have a bond, with a par value of $1000, that pays interest twice a year at the rate of 12%. You paid $853.29 when you purchased this bond

a) Calculate the interest rate yield of your bond.

b) You are selling this bond today and will receive $ 936.33 for it. What is the capital gain/loss?

Reference no: EM13116096

Questions Cloud

In which type of regression is likely to occur : Define Autocorrelation in the following terms. In which type of regression is it likely to occur? What is the negative impact of autocorrelation in a regression?

Find out the coefficient of kinetic friction between child : A child goes down a playground slide with an acceleration of 1.40. Find out the coefficient of kinetic friction between the child and the slide if the slide is inclined at an angle of 31.0 below the horizontal.

Conversion value of convertible : The conversion price of CRX's convertible ($1,000 par) subordinated debentures is $40 and the present market price of CRX common stock is $48.

How much energy in kilojoules is required : How much energy in kilojoules is required to convert 100 mL of diethyl ether at its boiling point from liquid to vapor if its density is 0.7138 g/mL.

Bonds-yield capital gain and loss : Suppose you have a bond, with a par value of $1000, that pays interest twice a year at the rate of 12%. You paid $853.29 when you purchased this bond

What mass in grams of tryptophan is in milk : What mass in grams of tryptophan is in 0.25 quart of milk, assuming tryptophan accounts for 2.0% of milk by mass and that the density of milk is 1.04 kg/L.

Portfolio-beta coefficient : After selling the stocks from the portfolio, what would be the total beta of the remaining stocks in your portfolio? What would be the beta of your portfolio if you purchase the new stocks and put it in your portfolio?

Illustrate what will be the speed of the ball : peg is located a distance h directly below the point of attachment of the cord. If h = 0.90 L, illustrate what will be the speed of the ball when it reaches the top of its circular path about the peg?

Information about financial math : Your required a rate of return is 4%. What is the value of a contract that pays the buyer $100 a year forever (the first payment is made exactly one year after purchase) plus an additional $1000 a year for the first 10 years

User Account

All Pages