What is the required rate of return on the bond

Assignment Help Finance Basics
Reference no: EM132003229

You bought a 30 year treasury bond that was issued two years ago. The face value is 500$ and sells at 106.50$. What is the required rate of return on the bond?

Reference no: EM132003229

Questions Cloud

Annual retirement income to increase each year : how much will Mary need on the day she retires to fund her retirement if she wants her annual retirement income to increase each year to match inflation?
Statements regarding stock trading : Which of the following statements regarding stock trading is INCORRECT?
The total annual coupon income : You buy a TIPS at issue at par for $1,000. The total annual coupon income you will receive in year 3 is _________.
Cash flows at the start of a proposal : For cash flows at the start of a proposal, do you note down the accounts receivables/ payables at the start of the cash flow or over the life of the plan
What is the required rate of return on the bond : You bought a 30 year treasury bond that was issued two years ago. The face value is 500$ and sells at 106.50$. What is the required rate of return on the bond?
Expected changes in spontaneous liabilities : Thus, you must estimate the change in financing needs and match this change with the expected changes in spontaneous liabilities, retained earnings.
Capital gain yield and total return on investment : Compute the dividend yield, capital gain yield and total return on your investment.
Sarbanes-oxley in reducing agency conflicts in corporations : How important are regulatory reforms such as Sarbanes-Oxley in reducing agency conflicts in corporations?
How many years until this bond matures : The yield to maturity is 7.34 percent and the face value is $1,000. Interest is paid semiannually. How many years until this bond matures?

Reviews

Write a Review

Finance Basics Questions & Answers

  Prepare a reformulated statement of shareholders equity

Reformulation of an Equity Statement with Hidden Losses: Dell, Inc. (Hard) The following is a condensed version of the statement of shareholders

  What is the value of a share of preferred stock

What is the value of a share of preferred stock that promises to pay $2.85 every year, indefinitely, if you have a required rate of return of 9.5%?

  Where does emergency management office reside at state level

Where does the emergency management office reside at the state level? Give three examples.

  Summarize your financial situation and plans

Summarize your financial situation and plans. Be sure to include plans for budgeting, saving, taxes and insurance, investing, retirement and estate planning.

  Plot the straddle and strangle payoff

Plot the straddle and strangle payoff along with the payoff of the butterfly spread. Repeat the above calculation for the short position in butterfly spread.

  Construct the current balance sheet reflecting the changes

The company generated $7 million in net income and paid $2.5 million in dividends. Construct the current balance sheet refl ecting the changes that occurred at Information Control Corp. during the year.

  Calculate the average rate of return for each stock

Stocks A and B have the following historical returns: a. Calculate the average rate of return for each stock during the 5-year period. b. Assume that someone held a portfolio consisting of 50 percent of Stock A and 50 percent of Stock B. What would h..

  Which investment has the higher irr

Which investment has the higher IRR? Which investment has the higher NPV when the cost of capital is 7%?

  What will the company ending cash balance be

Analyzing a statement of cash flows) A company has cash from operating activities of $220, cash from investing activities of ($93), cash from financing.

  Valuing bond and common stocks

XXC expects earnings per share to be $6.00 next period. The retention rate is 60% and return on equity (ROE) is 20%. The required return is 18%. Find out XXC's stock price?

  Show how economy will adjust back to long-run equilibrium

Now suppose that the Fed decides to intervene with monetary policy. If the Fed's policy is successful, show how the economy adjusts back to long-run equilibrium.

  What is the after-tax cash flow

If the equipment is sold for 40% of the initial cost in year 4, what is the after-tax cash flow from the sale if the tax rate is 35%?

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