What is your holding period yield

Assignment Help Finance Basics
Reference no: EM13263973

The yield-to-maturity on a bond is the interest rate you earn on your investment if interest rates do not change. If you actually sell the bond before it matures, your realized return is known as the holding period yield. Suppose that today, you buy a 12 percent annual coupon bond for $1,000. The bond has 13 years to maturity. Two years from now, the yield-to-maturity has declined to 11 percent and you decide to sell. What is your holding period yield?

Reference no: EM13263973

Questions Cloud

Write a single definition paragraph talking about the vari : For the primary independent variable, at least two research sources that discuss the variable also must be cited. These sources need not be technical documents but should contain evidence to justify the relationship between
What kind of deal did the soccer player snag : Assuming all payments, except the first $2 million are paid at the end of each year and the discount rate is 9% what kind of deal did the soccer player snag?
Calculate the current yield for each bond : Jason Greg is a recent retiree who is interested in investing some of his saving in corporate bonds. Listed are the bonds
Calculate each projects payback period cutoff : Calculate each projects payback period cutoff. Which would you accept if Puppy's payback period cutoff is 2 years.
What is your holding period yield : Two years from now, the yield-to-maturity has declined to 11 percent and you decide to sell. What is your holding period yield?
What is the relationship between the present value and time : What is the value today of a 10,000 payment made in perpetuity assuming a 8% discount rate?
What would its new share price be : Suppose the stock of Host Hotels & Resorts currently trading for $25 per share.
How fast are these protons moving : Protons in cosmic rays have been observed with kinetic energies as large 2.70 × 108 eV. How fast are these protons moving
What is amcs share price prior to the share repurchase : AMC Corporation currently has an enterprise value of $350 million and $110 million in excess cash. The firm has 10 million shares outstanding and no debt. Suppose AMC uses its excess cash to repurchase shares. After the share repurchase, news will..

Reviews

Write a Review

Finance Basics Questions & Answers

  Principle and rules based accounting standard

Please identify what accounting standard is the UK and United State using at the moment. Explain what is the difference between principle based accounting standard and rules based accounting standard.

  Calculate the additional funds needed

Assume net income for the coming year is p redicted  to be $1,634 and dividends are forecasted to be $657. After careful analysis, you determine asset needs for next year are $48,824 and liabilities are expected to be $12,869.

  What is the effective annual interest rate of an investment

What is the effective annual interest rate of an investment that pays 8.1% annual interest compounded semi-annually?

  Calculate the npv profitability index irr mirr

Calculate the NPV, profitability index, IRR, MIRR, payback and discounted payback of the cash flows in part 1.

  What is the required return

The next dividend payment by Blue Cheese, Inc., will be $1.64 per share. The dividends are anticipated to maintain a growth rate of 8 percent forever. If the stock currently sells for $31 per share, what is the required return?

  Determine market capitalization

In March 2005, General Electric had a book value of equity of $113 billion, 10.6 billion shares outstanding, and a market price of $36 per share.

  Computation of future value

Compute the future value of $1,000 in ten years assuming an interest rate of 12% compounded quarterly.

  Determination of required rate of return

Assume the RiskFree Rate is 8%, the Expected Return this year on the S&P 500 stock market index is 13 percent, and the stock of Joe's Junkyard has a Beta of 1.4.

  What is the annual implied interest of a five-year

Zero-coupon bond. What is the annual implied interest of a five-year zero-coupon bond (using the semiannual pricing convention) with a yield to maturity of 9% and a par value of $1,000?

  Computation of present value of share

Computation of present value of share while the company pledges to maintain a constant growth rate in dividends forever

  Describing money and interest rates

What are the primary economic indicators that you would use if you were thinking about making a large purchase and needed a loan? For example, you may consider a new house, car, or new capital for a business?

  Estimate the continuation value

Estimate the continuation value using the market/book ratio.

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