What nominal rate of return

Assignment Help Business Economics

Reference no: EM131806395

On April 2, 1998, an engineer bought a $1000 bond of an American airline for $875. The bond paid 6% on its principal amount of $1000, half in each of its April 1 and October 1 semiannual payments;it repaid the $1000 principal sum on October 1, 2011. What nominal rate of return did the engineer receive from the bond if he held it to its maturity (on October 1, 2011)?

Reference no: EM131806395

Questions Cloud

What are three of the leadership guidelines : What are three of the leadership guidelines that should be kept in mind as the adopted strategies or plans move to implementation?

Contrast components of public health insurance : Create a table to compare and contrast components of public health insurance (such as Medicare and Medicaid) and private health insurance.

Discuss the code of conduct and the code of ethics : Explain the differences, importance, and purpose of both the code of conduct and the code of ethics.

What is the interest rate for buying versus leasing : A bulldozer can be purchased for $380,000 and used for 6 years, when its salvage value is 15% of the first cost. Alternatively, it can be leased for $60,000.

What nominal rate of return : What nominal rate of return did the engineer receive from the bond if he held it to its maturity (on October 1, 2011)?

Particular attention to the appropriate organizational plan : Appropriate context for a business letter and a memo and paying particular attention to the appropriate organizational plan

How much is the net cash from financing investing activities : how much is the net cash from financing investing activities during the year

Mildred can purchase a municipal bond with a par : Mildred can purchase a municipal bond with a par (face) value of $5000 that will mature in 31/2 years. The bond pays 8% interest compounded quarterly.

What is the rate of return for the generator : A diesel generator for electrical power can be purchased by a remote community for $480,000 and used for 10 years, when its salvage value is $50,000.

User Account

All Pages