Calculate the total return

Assignment Help Finance Basics
Reference no: EM131044488

Assume that you purchase a 10-year $1,000 par value bond, with a 5% coupon, and a yield of 9%. Immediately after you purchase the bond, yields fall to 7% and remain at that level to maturity. Calculate the total return, if you hold the bond for 5 years and then sell. interest annual.

Reference no: EM131044488

Questions Cloud

Necessary to identify a target market : Explain the role of market segmentation including the criteria that can be used in ultimately identifying the target market. Why is it necessary to identify a target market?
What is the best means for collecting data on given behavior : What is the best means for collecting data on this behavior? I would use a Behavior Data Collection that focuses on the frequency since it is stated she does this a lot and we need to really see.
Practice of managing accounts receivable : Managing Accounts Receivable (Trade Credit) is critical to the company's ability to manage its daily ongoing operations and the associated cash flow requirements. Describe why the practice of Managing Accounts Receivable is so significant. Conside..
Steps in the cognitive decision-making process : Explain the five perceived risks associated with hesitation of the consumer to make a purchase. Include an example of each to support. How might a marketer mitigate each of these through their marketing efforts?
Calculate the total return : Immediately after you purchase the bond, yields fall to 7% and remain at that level to maturity. Calculate the total return, if you hold the bond for 5 years and then sell. interest annual.
How did a company end up in bankruptcy court : How did a company, the leader in video rentals at the end of the 20th century, end up in bankruptcy court? Use credible sources and research to support and explain.
Question regarding shares of outstanding common stock : McMichael has 250,000 shares of preferred stock with a $10 dividend and 1 million shares of outstanding common stock. Their average tax rate is 35% and marginal tax rate is 40%.
Essay- uses selected reputable brand to analyse brand equity : A 1800 word essay that uses a selected reputable brand to analyse brand equity, the brand's potential as a result of positioning, long-term brand loyalty, and brand communications
Write a one-page letter to the editor of the clark chronicle : Using the data from the survey above, write a one-page letter to the editor of the Clark Chronicle thanking them for agreeing to cover the recycling program and summarizing the data from your survey.

Reviews

Write a Review

Finance Basics Questions & Answers

  Computing the annuity due by using excel

Terry Austin is 30 years old and is saving for her retirement. She is planning on making 36 contributions to her retirement account at the beginning of each of the next 36 years.

  Which actions would increase the companys current ratio

which of the following actions would increase the company's current ratio?

  Analyzing a business

Suppose your friend, Michelle, has just purchased a buy. Because Michelle knows that you have just received your Associate's in Management at a university, she has asked for you for help in evaluating the company.

  Wine country introduction to industry-companies

What are some key financial differences between the three companies in the simulations?

  Find the annual interest rate

Find the annual interest rate

  Does it make economic sense to quit your job to do an mba

The MBA program is a full-time two year program with tuition and fees of $20,000 per yera. Your personal discount rate is 8%. Does it make economic sense to quit your job to do an MBA?

  What is its forecasted dividend payout ratio

Portland Plastics Inc. has the following data. If it follows the residual dividend policy, what is its forecasted dividend payout ratio?

  What about the ratio of the market value of debt

What about the ratio of the market value of debt to that of equity? Would you judge that leverage has increased, decreased or stayed the same? Justify all answers.

  What rate of return is the buyer expecting

He has been offered $25,778,500 to sell his ticket. What rate of return is the buyer expecting to make if Andy accepts the offer?

  What is the discount payback of the project

At the end of the fifth year, the company expects to sell the plane for $8MM. Required rate of return is 13%.

  The process of determining present value the interest

this exercise will quiz you about terminology used in this appendix.at list of accounting terms with which you should

  Exchange rate between these two currencies

What has the general trend been for the exchange rate between these two currencies? If you had invested $1,000 in Chilean pesos at the average rate at the begin- ning of the period and held that currency until now (your most recent rate), how much ..

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