Determine percentage holding period return on investment

Assignment Help Financial Management

Reference no: EM131340177

1. Suppose a U.S. Treasury bill, maturing in 30 days, can be purchased today for $99,500. Assuming that the security is held until maturity, the investor will receive $100,000 (face amount). Determine the percentage holding period return on this investment.

2. Suppose a Midwest Telephone and Telegraph (MTT) Company bond, maturing in one year, can be purchased today for $975. Assuming that the bond is held until maturity, the investor will receive $1,000 (principal) plus 6 percent interest (that is, 0.06 $1000 $60). Determine the percentage holding period return on this investment.

Reference no: EM131340177

Questions Cloud

Calculate the instantaneous value : Write down the standard expression for a voltage, of r.m.s. value 45 V, and frequency 1.5 kHz. Hence, calculate the instantaneous value, 38 s after the waveform passes through its zero value.

Calculate the investors percentage holding period return : An investor bought 10 Ellis Industries, Inc., long-term bonds one year ago, when they were first issued by the company. Calculate the investor's percentage holding period return for the one year he has held the bonds.

Characterize the important features of analyzed phenomena : Mathematical models are used as tools to describe reality. These models are supposed to characterize the important features of the analyzed phenomena and provide insight. The normal distribution is an example of a random variable that is widely us..

What three tools could the fed use to achieve the goal : Monetary policy is action taken by the Fed to influence the level of real GDP. Suppose the Fed wants to increase the money supply. What three tools could the Fed use to achieve this goal?

Determine percentage holding period return on investment : Assuming that the security is held until maturity, the investor will receive $100,000. Determine the percentage holding period return on this investment.

Record the first month transactions before printing : Record the first month's transactions before printing and submitting the following reports for December 2016 (either print to screen or print and scan as an electronic file). Marks will be awarded for the correctness of information as well as the ..

Calculate the amplitude of the generated emf : A sinusoidal voltage is generated by an 85 turn coil, of dimensions 20 cm by 16 cm. The coil is rotated at 3000 rev/min, with its longer sides parallel to the faces of a pair of poles.

Determine expected percentage holding period return : NTT is expected to pay a $4 dividend during the coming year, and the price of the stock is expected to increase to $65 a year from now. Determine the expected percentage holding period return on NTT common stock.

Discuss the evolution of presidential power in military : Select one (1) mental disorder that intrigues you the most, then suggest a treatment approach for the disorder you selected based on evidence discussed in the textbook related to the treatment of mental disorders. Next, discuss three (3) strategie..

User Account

All Pages