Calculate the realized rate of return on the bond

Assignment Help Finance Basics
Reference no: EM132704986

Five years ago, you purchased a corporate for 942.41. At the time, the bond had a YTM of 10% and 9 years left to maturity. Today, the YTM on your bond is 8%. with this information, calculate the realized rate of return on the bond knowing that you bought the bond five years ago, you sold the bond today, you never reinvested the coupons paid on the bond, and the coupon rate on the bond is (9%,2).

Reference no: EM132704986

Questions Cloud

Calculate npv and mirr of the project : Calculate NPV and MIRR of the project. (Remember CF0 must be negative, otherwise you will get an error.)
Difference in leadership between the two genders : Is there a difference in leadership between the two genders? Is it obvious within organizations?
Determine what is the firm ebit : Determine What is the firm's EBIT? Income tax = $2,500,400 Operating expenses = $6,005,200 COGS = $17,850,720. Interest Expense = $1,706,000
Calculate the price elasticity for these T-shirts : The fourth received the $10.99 catalog, and so on throughout the entire 500,000 customer mailing list. Calculate the price elasticity for these T-shirts
Calculate the realized rate of return on the bond : Five years ago, you purchased a corporate for 942.41. At the time, the bond had a YTM of 10% and 9 years left to maturity.
What assumptions about thompson manufacturing would you make : If you were Allen Guthrie, what assumptions about Thompson Manufacturing would you make? Would you call Sheila Stephens back later in the day?
Implements separation of powers and checks and balances : Analyze how the U.S. Constitution implements separation of powers and checks and balances
Potential vulnerabilities does social media network : How are new technologies affecting OSINT collection and analysis? What potential vulnerabilities does a social media network present?
Determine the revised amount of the last installment : Determine the revised amount of the last installment. A loan with an effective annual interest rate of 5% is being repaid in fifteen annual installments

Reviews

Write a Review

Finance Basics Questions & Answers

  Disadvantages of accepting more foreign investors

What are the disadvantages of accepting more foreign investors?

  Describe the samuelson-mckean formula

Suppose the risk-free (i.e., government bond) interest rate is 6%, the current cash yield payout rate on newly built property is 9%, and the annual volatility.

  What will happen to the interest rates on treasury security

Predict what will happen to interest rates on a corporation’s bonds if the federal government guarantees today that it will pay creditors if the corporation goes bankrupt in the future. What will happen to the interest rates on Treasury securities?

  What would be the effect on the bond price

A bond's credit rating provides a guide to its price. In early 2012, Aaa bonds yield 5.3% and Baa bonds yield 5.9%. If some bad news causes a five-year bond

  Name the organization involved

Research recent cases (2015-2017) involving employment discrimination with regard to either sexual orientation or religious discrimination.

  First two companies value the private company

Using the average of the P/E multiples of the first two companies value the private company. Report your answer in the answer box.

  What is the expected return for ford

Ford Motor Company's stock is currently selling for $16.23 per share, with a beta of 0.71. If risk-free securities are currently returning 2.7% and the market

  Briefly identify the four categories of knowledge

Briefly identify the four categories of knowledge and skill that a manager should have in order to manage one-on-one communication effectively.

  Business entry for imperfect competition firms

Use the graph below to explain the output, profit and loss conditions for monopolistically competitive firms. Show your work

  Examples of disposal groups in the ifrs5

What are some of the examples of disposal groups in the IFRS5

  Company x has 4 million shares of common stock outstanding

company x has 4 million shares of common stock outstanding. the current share price is 76 and the book value per share

  Provide a brief summary of the purpose and audience

Research the many organizations available to Communication Professionals. Select a minimum of five and provide a brief summary of the purpose and audience for each. Discuss which organizations you would consider joining and explain what benefits..

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