What implied rate of return does the bond offer

Assignment Help Finance Basics
Reference no: EM13268490

A riskless zero-coupon (no intermediate/periodic coupon payments) bond that will pay $1,000 in 10 years is selling today for $350. What implied rate of return does the bond offer?

a. 3.5%
b. 0%
c. 11.07%
d. 35%

 

Reference no: EM13268490

Questions Cloud

Find the potential difference between the ends of the bar : A uniform magnetic field B is perpendicular to the plane of rotation. What is the potential difference between the ends of the bar
Find the norton equivalent current for the circuit : A somewhat discharged automotive battery has an open-curcuit voltage of 12.5 V and supplies 50 A when a 0.1 ohm resistance is connected across the battery terminals. find the thevenin equivalent voltage
Compute the wavelength of the laser light : A laser beam is incident on two slits with a separation of 0.230 mm, and a screen is placed 5.10 m from the slits. what is the wavelength of the laser light
Find the matrix representation of differentiation operation : Suppose that the voltage v(t) is then inputted to a differentiator circuit. Find the matrix representation of the differentiation operation with respect to the basis B. Verify your derivative using your knowledge from calculus.
What implied rate of return does the bond offer : A riskless zero-coupon (no intermediate/periodic coupon payments) bond that will pay $1,000 in 10 years is selling today for $350. What implied rate of return does the bond offer?
What is the effective interest cost of this loan : Set up the amortization schedule for a 5-year, $1 million, 9 percent term loan that requires equal annual end-of-year payments plus interest on the unamortized loan balance. What is the effective interest cost of this loan?
What are the implications of a higher interest rate : What is it worth if the discount rate increases to 6% because of some risk? Show your calculation. What are the implications of a higher interest rate?
Calculate the kinetic energy of the electrons : A beam of electrons is incident on two slits separated by a distance of 2.0×10-6 m. Calculate the kinetic energy of the electrons
What is the future value of these investment cash : what is the future value of these investment cash flows six years from today?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate current and expected stock price

The Jackson-Timberlake Wardrobe Corporation just paid a dividend of $1.60 per share on its stock. The dividends are expected to rise at a constant rate of 6 percent per year indefinitely.

  Making income statement and balance sheet

Fast Track Sports firm was started by John Ross early in 2012. Initial capital was acquired by issuing shares of common stock to various shareholders and by obtaining a bank loan.

  What is the cash flow recovery from net working capital

What is the cash flow recovery from net working capital at the end of this project?

  Calculate the average rate of return

Suppose that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. Determine the realized rate of return on the portfolio have been in each year?

  Did these assets change in value on the firm financial state

A U.S. firm has total assets valued at €125,000 located in Germany. This valuation did not change from last year. Last year, the exchange rate was €1.1 = $1. Today, the exchange rate is €0.8 = $1. By what amount did these assets change in value on th..

  What is the receivables turnover

Rise Above This, Inc., has an average collection period of 46 days. Its average daily investment in receivables is $67,800. Assume 365 days per year.

  Determine average cash balance

Throughout the course of the year, my various projects will require a total amount of cash of $4,000,000. The interest cost for this requirement is 9.75 percent

  High tech firm acquisition

Your firm is interested in acquiring a high tech firm to expand its business. It is considering making the acquisition usingcash, stock, or a combination of both.

  Calculate two years of mortgage payments

Prepare an amortization table and assume that a full month's interest must be paid for the first month and that payments begin February 1st compute two years of mortgage payments.

  Maximizing net present value

Josephine requires to sell her home in a down market and to do this, she is willing to finance the buyer. She discovered a buyer that suggested multiple offers.

  Time value of money issues

You're planning the round-the-world travel extravaganza with friends, with departure date five years from today. The cost of such a trip today is $10,000, but you expect the cost in 5 years to increase at the expected rate of inflation (2%).

  Effective supply side management

Electronic Data Exchange and Electronic Funds Exchange have been active in larger firms for more than 10-years. Determine examples from your research and knowledge where the above tools have greatly improved business efficiency.

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