Calculate realized rate of return earned on bond

Assignment Help Financial Management
Reference no: EM131963534

You bought a bond five years ago for $950 per bond. The bond is now selling for $950. It also paid $75 in interest per year, which you reinvested in the bond. Calculate the realized rate of return earned on this bond. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM131963534

Questions Cloud

What is knowledge transfer : What is knowledge transfer? How does an organization ensure that knowledge is transferred properly and to the right individuals?
What is the amount of cost and not including depreciation : What is the amount of cost (not including depreciation)?
Discuss about the knowledge of personality development : First, identify one or two aspects of the course that added to your knowledge of personality development, in general, and explain why.
What will be the outstanding loan balance : Calculate the monthly debt service. What will be the outstanding loan balance at the end of year 10 and how much total interest will have been paid on the loan
Calculate realized rate of return earned on bond : which you reinvested in the bond. Calculate the realized rate of return earned on this bond.
What project areas need to be assessed in readiness process : What project areas need to be assessed in a readiness process? What is included (and not included) during the stabilization timeframe?
What is the present value of the payments you will receive : You have just won the Strayer Lottery jackpot of $11,000,000. You will be paid in 26 equal annual installments beginning immediately.
Write social psychology theory or concept of interest : For this assignment, first select one social psychology theory or concept of interest to you from the list below: Appraisal motive and self-enhancement motive.
How different models integrate with each other to create erp : Explain the functions associated and how the different models integrate with each other to create this ERP.

Reviews

Write a Review

Financial Management Questions & Answers

  What is beta of your portfolio

What is the beta of your portfolio?

  What is the stock expected price two years from today

A stock is expected to pay a dividend of $1.25 at the end of the year, what is the stock's expected price 2 years from today?

  What is the fund turnover rate

You want to borrow $38,400 and can afford monthly payments of $960 for 48 months, but no more. Assume monthly compounding. What is the highest APR rate you can afford? Use financial calculator. A mutual fund has $225 million dollars in assets, 22 mil..

  Decline in the future the term of structure of interest rate

When investor believe that inflation is going to decline in the future the term of structure of interest rates will:

  Explain what you understand by the term credit risk

CRN33235 - Explain what you understand by the term credit risk. Discuss the alternative methodologies which have been proposed to measure credit risk. Your discussion should include the limitations of each approach.

  Equity account balances-common stock-capital surplus

Unique Jewelers has the following equity account balances: common stock of $40,000 with a $1 par value, capital surplus of $260,000, and retained earnings of $411,000. The stock has a market value of $52 a share. Assume the firm does a 3-for-2 stock ..

  What type of nominal rate-of-return-retirement savings

Suppose that you get married after graduating with your undergraduate degree. During your working years, your household makes an average annual income of $100,000. How many years does your household plan to work? This is a number you must specify. Wh..

  A treasury bill has a bid yield

A Treasury bill has a bid yield of 3.46% and an ask yield of 3.4%. The bill matures in 120 days. Assume a face value of $1,000. What is the least you could pay to acquire a bill?

  Using the departmental cost-charge ratios and variable cost

Your hospital has been approached by a major HMO to perform all their MS-DRG 470 cases (major joint procedures). They have offered a flat price of $10,000 per case. You have reviewed your charges for MS-DRG 470 during the last year and found the foll..

  What is the practical limit based on liquidity

Planetary Travel Co. has $165,000,000 in stockholders’ equity. Common stock is $60,000,000 and the balance is retained earnings. The firm has $255,000,000 in total assets and 5 percent of this value is in cash. Earnings for the year are $27,000,000 a..

  What is the expected return on its publicly traded stock

Suppose that the risk free rate is 4 percent and the market rate of return is 12 percent. For a health care firm with a market beta of 1.3, what is the expected return on its publicly traded stock?

  Coined the phrase irrational exuberance

Alan Greenspan coined the phrase "irrational exuberance" in late 1996 to describe the rapid growth in the stock market.

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