What does this do to the value of the bond the investor

Assignment Help Financial Management

Reference no: EM131956122

When an investor purchased a $1,000 face value bond with an annual coupon payment of $120 and a maturity years for $1, 122.89, it had a yield to maturity of 10%.

Now, one year later, with same coupon payment and face market interest rates on bonds of this kind have risen to 12%.

What does this do to the value of the bond the investor purchased?

Reference no: EM131956122

Questions Cloud

How much will be able to withdraw after retirement : She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate.

What was the rate of return on this investment : An investor purchased 350 shares of a company at $40 per share. The stock was bought on 70 percent margin (30 percent of the purchase amount was borrowed).

Prepare journal entries to record maples import and export : Maple Company had the following export and import transactions. Prepare journal entries to record Maple's import and export transactions during 20X5 and 20X6.

Formula for circular velocity : Among the globular clusters orbiting a distant galaxy, one is moving at 420 km/s and is located 11 kpc from the center of the galaxy.

What does this do to the value of the bond the investor : Now, one year later, with same coupon payment and face market interest rates on bonds of this kind have risen to 12%.

Compute sams amortization deduction for the year of purchase : As part of the purchase price of a business, on January 1, Sam Farrow pays $ 100,000. Compute Sam's amortization deduction for the year of purchase.

Determine the equivalent taxable yield : A client in the 35 percent marginal tax bracket is comparing a municipal bond that offers a 6.50 percent yield to maturity and a similar-risk corporate bond.

What rate of return per year will the investor make over : An investor has invested $250,000 in a new rental property. Her estimated annual costs are $6000 and annual revenues are $20,000.

Rms potential difference : Consider an AC emf source connected to a resistor. If the average power dissipated is 455 W and the rms current is 5.28 amperes, what is the value

User Account

All Pages