Calculate the interest as a percentage of total cash flows

Assignment Help Accounting Basics
Reference no: EM133052485

Question - A U.S. Government T-bond matures in 15 years and has a face value of $100. The bond has a coupon rate of 3.7% paid semi-annually (the next coupon is due in 6 months). The yield on the bond is 5.6%. If coupons are re-invested at 4.5% per annum, then how much interest is earned on re-invested coupons over the life of the bond? Calculate the interest as a percentage of the total cash flows received at maturity by the bondholder. Express your answer in percentage form rounded to the nearest percent.

Reference no: EM133052485

Questions Cloud

Calculate the expected increase in ocean heat : A study that has been going on for many years is if global warming is real and how long it will take until the earth becomes uninhabitable from it.
Describe a real-life problem : Describe a real-life problem (for example pollution, public transit, and ER wait times) where you have encountered a problem that could have benefited from a de
Calculate the project NPV using a discount rate : Thus, in year 7 the investment cash inflow totals $5,100,000. Calculate the project's NPV using a discount rate of 10 percent
What factors influence knowledge sharing in organisations : Can you please help me find and annotate/critique 3 scholarly journal articles on What factors influence knowledge sharing in organisations?
Calculate the interest as a percentage of total cash flows : A U.S. Government T-bond matures in 15 years and has a face value of $100. Calculate the interest as a percentage of total cash flows
Hackman and oldham model : Identify a job you have worked on and assess it using the Hackman and Oldham model. Compare and contrast how you feel about that job with the results from your
Profit medical organizations : Please summarize the two paragraphs using your own words. In the summary please use the information and reference included.
What dividend will the company pay : Slugworth Confection Co. Series A cumulative Preferred shares have a par value of $50, What dividend will the company pay in 20X4
Does mr thomas behaviour raise any ethical concerns : David Thomas, a supervisor in the electronics department at the ABC Corporation, manages a non-unionised plant where the work atmosphere appears to be a "good o

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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