What is the holding period return in this half year

Assignment Help Financial Management
Reference no: EM131897668

A bond pays semi-annual coupon of $40. In half a year, price increases from $950 to $1000.

a) what is the capital gain yield?

b) what is the income yield?

c) what is the holding period return in this half a year?

Reference no: EM131897668

Questions Cloud

Development or growth of salamanders in a laboratory setting : Pick one water pollutant design an experiment that tests if it is affecting development or growth of salamanders in a laboratory setting.
Describe your personal beliefs about aging : Describe your personal beliefs about aging with respect to physical, cognitive, and psychosocial domains. Which aspects of aging do you view positively?
Pivotal events in the history of vertebrates : The water to land transition was one of the most pivotal events in the history of vertebrates. This transition had major implications for every organ system.
Dietary energy source for the body : Why are they not recommended to be the most significant dietary energy source for the body?
What is the holding period return in this half year : what is the capital gain yield? what is the income yield? what is the holding period return in this half a year?
Write a convincing essay on a nuclear related topic : Assignment: Persuasive Essay- Your writing assignment will be to write a 3-4 page convincing and persuasive essay on a nuclear related topic.
Can clostridium difficile be seen with the naked eye : Can Clostridium difficile be seen with the naked eye? Can it be cultured, if so what does the culture look like? What type of microscope
Discuss what you would include in your assessment : Discuss what you would include in your assessment? Which assessment findings support a risk for
Find the rate of return on this load fund : Use the approximate yield formula or a handheld financial calculator to find the rate of return on this load fund; it was purchased a year ago,

Reviews

Write a Review

Financial Management Questions & Answers

  Find the effective rate of return on this bond

Fisher Company has a bond outstanding. The coupon rate is 7.2% and the coupons are semiannually. The current value of the bond is $1,150.06. The time to maturity is 17 years. Find the effective rate of return on this bond.

  What should happen to the value of the us dollar

According to the theory of purchasing power parity, what should happen to the value of the U.S. dollar relative to the Mexican peso if each of the given occurs?

  Value of european put option with strike price

A stock with an annual standard deviation of 23 percent currently sells for $73. The risk-free rate is 3.6 percent. Whta is the value of a European put option with a strike price of $75 and 72 days to expiration? (Use 365 days in a year)

  What are the prices of these bonds today

Bond X is a premium bond making annual payments. The bond has a coupon rate of 8.5 percent, a YTM of 6.5 percent, and has 18 years to maturity. Bond Y is a discount bond making annual payments. What are the prices of these bonds today? What do you ex..

  Future external financing needs

Future External Financing Needs, any external sources of capital (green projects or energy conservation projects) look for areas outside of software

  Return and volatility information for two assets

Assume the following return and volatility information for two assets A and B

  What is the firms optimal debt ratio

The firm currently has 1 million shares outstanding at $ 20 per share. (Tax rate = 40%) What is the firm's optimal debt ratio?

  The modified internal rate of return

The Modified Internal Rate of Return (MIRR) addresses two concerns related to the Internal Rate of Return (IRR) technique. Discuss what they are and how they are addressed by the MIRR.

  Compound interest with non annual periods

(Compound interest with non annual periods) After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at 6 percent compounded weekly or from a bank at 7 percent compounded monthly.Whic..

  Forecasting risk is defined as the possibility

Forecasting risk is defined as the possibility that:

  What will be the percentage change in the bond price

A bond has a coupon rate of 8 percent, 7 years to maturity, semiannual interest payments, and a YTM of 7 percent. If interest rates suddenly rise by 2 percent, what will be the percentage change in the bond price?

  What is the amount of the first coupon payment

Your firm has just issued five-year floating-rate notes indexed to six-month U.S. dollar LIBOR plus 1/4 percent. What is the amount of the first coupon payment your firm will pay per U.S. $1,000 of face value, if six-month LIBOR is currently 7.2 perc..

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