Return over three-year period

Assignment Help Finance Basics
Reference no: EM131992486

You buy a 12-year 10 percent annual coupon bond at par value, $1,000. You sell the bond three years later for $1,100. What is your rate of return over this three-year period?

Reference no: EM131992486

Questions Cloud

Create programs based on incremental development processes : MN404 - Fundamentals of Operating Systems and Programming - Write an Algorithm/ flowchart and then convert it to a java program for given game of NIM.
Calculate the internal rate of return of the fixed asset : A company wants to buy a machine that costs $15,000 with a useful life of 9 years. The system generates cash flows after taxes of $2,205.23 each year.
Calculate the probability that the nav of the mutual fund : Calculate the probability that the NAV of the mutual fund a year from now (after the dividend distribution) will be between $50 and $60?
Corporate philanthropy and corporate social responsibility : What effect do corporate philanthropy and Corporate social responsibility programs on shareholder wealth maximisation theories with evidence?
Return over three-year period : You sell the bond three years later for $1,100. What is your rate of return over this three-year period?
Calculate the forward rates and discount factors : (a) How many forward rates are associated with these zero rates? (b) Calculate the forward rates and discount factors.
Programming constructs in developing computer programs : Write a detailed algorithm and a program that plays the ancient Chinese game of NIM. Actually, this is a simplified version of the game
Computing the value of equity : Which is financed by $4m of equity and $6m of debt. The NPV of the project is $15m. What's the value of equity?
What will be the stock price after the recapitalization : Assume that the company is able to execute the leveraged recapitalization secretly, and investors only know after its completion.

Reviews

Write a Review

Finance Basics Questions & Answers

  Identify each of the given sources of short-term credit

(Terminology) Identify each of the following sources of short-term credit in terms of whether they are secured (include some type of collateral).

  What are cash receipts in march

if excel inc. has projected sales of $20,000 in january, $15,000 in february, and $30,000 in march 80% of sales are on credit 20% are collected in the month of sale and 80% are collected the month after, what are cash receipts in march?

  Find the amount of each of the first 359 payments

If Mr. Johnson sold the house just after his 36th payments for $200,000.00, how large a check did he receive?

  What is the expected spot rate of the australian dollar

Today the spot rate of the Australian dollar is $.81, and the one-year forward rate is $.77. What is the expected spot rate of the Australian dollar in one year?

  What is the present value of the bond

What is the present value of the bond? - If the required rate of return by investors were 14 percent instead of 11 percent, what would be the present value of the bond?

  Estimating the percentage depreciation

Percentage Depreciation. Assume the spot rate of the British pound is $1.73. The expected spot rate one year from now is assumed to be $1.66. What percentage depreciation does this reflect?

  What are the total finance cost of this loan

Jamil is purchasing a new truck for $30,000. Jamil is making a $2,000 down payment, and he will make 60 monthly payments of $541 each. What are the total finance cost of this loan?

  Calculate the equivalent annual annuity

What is it that you are calculating when identifying the EAA and how would you make a financing decision based on the EAA for two different projects?

  Who are the primary regulators of the mutual fund industry

Who are the primary regulators of the mutual fund industry? How do their regulatory goals differ from those of other types of financial institutions?

  Economy has become more global

How has financial management changed as the economy has become more global?

  Days are in the operating cycle

ABC Corporation currently has an inventory turnover of 17.19, a payables turnover of 10.17, and a receivables turnover of 19.43. How many days are in the operating cycle?

  Price of the new share

Design a new share issue and calculate how many shares must be held to obtain the right to one new share, and what will be the price of the new share?

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