Determine what will be the rate of return on the bond

Assignment Help Financial Econometrics

Reference no: EM13328192

A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $106 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year is:

a. 6%
b. 10.6%
c. 12.6%

Reference no: EM13328192

Questions Cloud

Explain the empirical formula of the hydrated compound : A hydrated iron chloride compound was found to contain 20.66% Fe, 39.35% Cl, and 39.99% water. Determine the empirical formula of this hydrated compound.

Determine how long the sheaf is airborne : One of the events in the Scottish Highland Games is the sheaf toss, in which a 7.92-kg bag of hay is tossed straight up into the air using a pitchfork. Using the total impulse produced by gravity, determine how long the sheaf is airborne

Find additional equity financing is required for next year : Wagner Industrial Motors, which is currently operating at full capacity, has sales of $2,450, current assets of $790, current liabilities of $480, net fixed assets of $1,640, and a 5 percent profit margin.

Define kilograms of water per minute needed to remove sulfer : Calculate (a). the kilograms of water per minute needed to remove the sulfur dioxide assuming that the exit water is in equilibrium with the entering gas and (b) the ratio of the water stream to the gas stream. The Henry's law constant for sulfur ..

Determine what will be the rate of return on the bond : A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $106 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year

Water in an enclosed vessel at 17°c contains a concentration : Water in an enclosed vessel at 17°C contains a concentration of dissolved oxygen of 6 mg/L. At equilibrium, determine the concentration of oxygen in the space above the water in molal fraction. and the total pressure in the vessel. Henry's law con..

How much will have if makes deposits for 50 years : If you deposit $5,200 at the end of each of the next 25 years into an account paying 10.30 percent interest, how much money will you have in the account in 25 years

Evaluate the dew point of the stack gas : The flue gas analysis. The few gas analysis shows as carbon dioxide 14%, carbon monoxide 0.4%, oxygen 5.6% and nitrogen 80%. The air used has a dew point of 50°F. The barometer shows 29.9 inches of mercury. Calculate the dew point of the stack gas..

Identification of data requirements from different user : Structured Methodologies, Data Flow Diagrams, Entity Relationship diagrams, Structured English, Decision Tables and Cohesion/coupling.

User Account

All Pages