What is the effective rate of return on the bond

Assignment Help Financial Management

Reference no: EM13766688

A $5,000 face value industrial bond can be purchased for $4,920. Its interest rate is 8% and it pays interest semi annually and will mature in eight years.

What is the effective rate of return on the bond?

What is the effective rate of return that the purchaser can expect to receive if the bond is purchased?

Reference no: EM13766688

Questions Cloud

Principles of constructivist teaching : Explain and give examples showing how these tenets support science literacy.

How much return will his investment earn : Mr. Nailor invests $6,000 in a money market account at his local bank. He receives annual interest of 8% for 7 years. How much return will his investment earn during this time period? (Compound monthly)

Compounded annually : If you invest $10,000 at 10% interest (compounded annually), how much will you have in 10 years? Round your answer to the nearest dollar.

What are accruals : What are accruals? Provide examples of accruals. Why do accruals require adjusting entries? What types of accounts are debited and credited in an unearned revenue adjusting entry?

What is the effective rate of return on the bond : A $5,000 face value industrial bond can be purchased for $4,920. Its interest rate is 8% and it pays interest semi annually and will mature in eight years. What is the effective rate of return on the bond? What is the effective rate of return that th..

Student loans-average educational debt for veterinary school : Student loans: In 2010, according to the JAVMA journal report, the average educational debt for veterinary school graduates was $133,873. The average starting salary for vets in private practice in 2010 was $67,548. If the vets earning an average sal..

Describe the establishment of a restaurant : Describe the establishment of a restaurant library, mall, dining hall, coffee shop, or similar public location. Plan to spend a minimum of two hours at the location.

How these techniques complement other collection disciplines : These disciplines are much more useful in the current environment. How do these techniques complement the other collection disciplines (HUMINT, COMINT, SIGINT, Imagery)

Determining the company fixed expense : Madlem, Inc., produces and sells a single product whose selling price is $240.00 per unit and whose variable expense is $86.40 per unit. The company's fixed expense is $720,384 per month.

User Account

All Pages