What is rate of return as of today

Assignment Help Finance Basics
Reference no: EM132557359

Alex purchased a $1,000 par value bond one year ago at a price of $1,016. At the time of purchase, the bond had 12 years to maturity and a 5 percent, semiannual coupon. Today, the bond has a yield to maturity of 5.25 percent. What is his rate of return as of today?

Reference no: EM132557359

Questions Cloud

Explain what the staff should expect the auditors to do : Auditors have come into a department as part of a company-wide audit prior to issuing an audit opinion for the company's financial reports.
What is the current share price : Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth
How much will be paid by the insurance company : Your individual health policy has a deductible of $100 on the first $500 claim and a 25 percent coinsurance on any remaining claim
What can creditors and other users glean from an analysis : Referencing this week's readings and lecture, describe the following terms as they relate to the statement of cash flows: cash, operating activities, investing.
What is rate of return as of today : Today, the bond has a yield to maturity of 5.25 percent. What is his rate of return as of today?
What was the arithmetic average return : You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 11 percent, -10 percent
Explain the purpose of a cash flow statement : In a two- to three-page paper (not including the title and reference pages), explain the purpose of a cash flow statement and how it reflects the firm's.
Repeat the process for oracle corporation : Look at yahoo finance and , type in the symbol DELL (for Dell, Inc.) and click on "Get Quotes."
Discuss the job of a cfo : Discuss the job of a CFO. What should you do? How should you make the decisions?

Reviews

Write a Review

Finance Basics Questions & Answers

  The taussing company whose stock price is currently 30

the taussing company whose stock price is currently 30 needs to raise 15 million by issuing common stock. underwriters

  Report upon the year financial transaction of the company

You are the financial manager of Wal-Mart who will submit a report on this year's (2013) financial transactions to the company's CFO Charles Holley. You want to verify that the following estimates prepared by your staff are correct.

  How much does the firm have invested in receivables

International Enterprises has annual credit sales of $ 1 56,000 and a tax rate of 40 percent. The firm sells on terms of net 30, but owing to a lax collection.

  What is the firm value today

What is the firm's value today? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $13,550,000 should be entered.

  Would you recommend hedging in this case

What is the expected gain/loss from a forward hedge? If you were the financial manager of Cray Research, would you recommend hedging this euro receivable? Why or why not? Suppose the foreign exchange adviser predicts that the future spot rate will be..

  Calculate the annual cash flows

Assume you are considering investing in a landscaping business. The cost of the equipment is $80,000 and you will need to invest other $20,000 in net working capital.

  What are the required annual payments on the loan?

What are the required annual payments on the loan?

  What is the stock price if the discount rate for the stock

You expect a share of stock to pay dividends of $1.7, $2.5 and $2.6 in each of the next 3 years. You believe that dividends are projected to increase

  Determine the percentage change of the euro

Three years ago the us dollars equivalent of a foreign currency was $1.2167? today, the us dollars equivlent of a foregin currency is$1.3310. determine the percentage change of the euro between the two year dates.

  How many shares of stock should the company sell

How many shares of stock should the company sell, and buy back bonds from the proceeds, to attain its optimal capital structure?

  Compute the realized rate of return for an investor

Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called.

  Estimate the firm reinvestment rate

If we assume that the firm is in stable growth, growing 5% a year forever, estimate the firm's reinvestment rate.

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