What annual rate of return would she have earned

Assignment Help Finance Basics
Reference no: EM13276011

On March 28, 2008, Dover Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $100,000 on March 28, 2033, but investors would receive nothing until then. Investors paid DMF $25,399 for each of these securities; so they gave up $25,399 on March 28, 2008, for the promise of a $100,000 payment 25 years later. Rate % (a) Based on the $25,399 price, what rate was DMF paying to borrow money? (Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Rate of Return % (b) Suppose that, on March 8, 2019, this security's price is $40,883. If an investor had purchased it for $25,399 at the offering and sold it on this day, what annual rate of return would she have earned? (Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Rate of return % (c) If an investor had purchased the security at market on March 8, 2019, and held it until it matured, what annual rate of return would she have earned? (Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Reference no: EM13276011

Questions Cloud

What is the capacitance of the configuration : Consider a hollow cylinder with a length L along the z-axis and a radius R and a charge -Q, containing a wire also of length L and charge Q running co-axially to the cylinder at its center.
Define all the symmetry planes in the staggered conformation : Describe all the symmetry planes in the staggered conformation of ethane. Draw a figure and arrows to show any rotational symmetry axes in the staggered conformation of ethane.
What debt-equity ratio is needed for the firm : What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?
How far vertically has an electron traveled : An electron is traveling horizontally along the positive x-axis at a speed 3.00 x 106 m/s. After it passes the origin, it enters a constant E field with a strength of 200 N/C and directed 45 degrees up from the x-axis.
What annual rate of return would she have earned : Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Design system should be smart enough to decide winner team : write a programe capable of winner team. the system must incoporate the score of each players and number of overs played.designed system must be efficent enough to keep track of extras,no balls,byes,legbyes.
What is the value of the stock today : What is the value of the stock today? 4. Would today's stock value be affected by the length of time you intend to hold the stock?
What issues would you want to alert the hospital board : What issues would you want to alert the hospital board to concerning whether this is a permissible venture, and how the HMO can use its capital funds?
Explain cis-dibenzoylethylene is converted to a more stable : cis-dibenzoylethylene is converted to a more stable, new product, ethyl 4-phenyl-4-phenoxy-3-butenoate. What is the structure of the new product

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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