Find out the capital gain return

Assignment Help Finance Basics
Reference no: EM133000093

A US Government bond has 13 years remaining to maturity, pays annual coupons (yesterday) of $40, and has a face value of $1,000. The bond is currently priced to yield 3.75%. If you buy the bond today, hold it for one year and sell it after the next coupon, then what capital gain return will you earn for the year? (Assume that yields are expected to remain constant at the current level over the bond's life)) Enter your answer as a percent, rounded to 2 decimal places. If you answer is 0.0154, enter 1.54 without the percent symbol

Reference no: EM133000093

Questions Cloud

How you would structure such a guarantee bond using calls : (a.) Carefully explain how an airline could eliminate the uncertainty of oil price movements using oil futures contracts. It is important that you include relev
What will be the implied exercise exchange rate : What will be the implied exercise exchange rate in this case if Monaco enterprises were to give the French client a free option to purchase a free option of up
What is an agency problem : What is an agency problem? How can shareholders insure that managers are acting in their best interest?
What is the portfolio standard deviation : What is the portfolio standard deviation
Find out the capital gain return : A US Government bond has 13 years remaining to maturity, pays annual coupons (yesterday) of $40, and has a face value of $1,000. The bond is currently priced to
Economist about future interest rates : Why do some forecasts by well-respected economists have no impact on today's value of the dollar?
Compelling risks of not issuing a letter of engagement : List and briefly describe the two most compelling risks of not issuing a letter of engagement.
Duration is important in bond portfolio management : Duration is important in bond portfolio management because I) it can be used in immunization strategies. II) it is convenient to calculate portfolio duration, w
How much total cash will avery pay the bondholders to retire : How much total cash will Avery pay the bondholders to retire these bonds early? Avery Corp. has bonds outstanding with a face value of $500,000

Reviews

Write a Review

Finance Basics Questions & Answers

  What are the purposes for margin purchase

What are the purposes for margin purchase and short sale respectively? Discuss their risk in comparison with other normal trading.

  Irr and profitability index for all projects

Calculate the NPV, IRR and Profitability Index for all projects - Explain how cash flow pattern of each project affects its profitability and place on the ranking grid.

  What is the dollar amount of dividends

What is the dollar amount of dividends that he received for owning the stock during the year? Round to two decimal places.

  Given the following information answer the following

given the following information answer the following questiontr 3qtc 1500 2qa. if the total cost equation were tc

  What are the net operating cash flows

The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm's R&D department.

  What is an internal strategic audit

What is an internal strategic audit? Identify which elements of an internal strategic audit is either most and or least appealing?

  Describe the common valuation methods

Business valuation is both an art and a science. Explain the concept of fair market value. Describe the common valuation methods used by entrepreneurs.

  Approximate yield rate for mary investment

What was the approximate yield rate for Mary's investment?

  What is the net present value of the project

Stephenson Real Estate Company was founded 25 years ago by the current CEO, Robert Stephenson. The company purchases real estate, including land and buildings.

  Market on a risk-adjusted basis

If the risk-free rate is 5%, calculate and compare the Sharpe Ratio and the Treynor Index for both Your Portfolio and The Market. Did your portfolio beat the market on a risk-adjusted basis?

  What should be the futures price

In December 2014, 6-month futures on the Australian S&P/ASX 200 Index traded at 5,389. Spot was 5,446. The annual interest rate was 2.55%.

  Challenges to industry giants-industry change

In your lifetime, do you think companies such as Coke, McDonald's, or Google will be overtaken by new, entrepreneurial companies? In a 200-250 word response, indicate why you selected your answer.

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