What nominal rate of return did the engineer receive

Reference no: EM132160989

Question: 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: EM132160989

Questions Cloud

Determine the effective rate of return : Mike buys a corporate bond with a face value of $1000 for $900. The bond matures in 10 years and pays a coupon interest rate of 6%.

What rate of return will she earn : 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.

Suppose that you have performed in-order : pose that you have performed in-order, pre-order, post-order, and level-order traversals on an arbitrary AVL tree.

What are assumptions in the context of excel : What are assumptions in the context of Excel? State one example or way of using assumptions in excel.

What nominal rate of return did the engineer receive : 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.

Identify necessary countermeasures that should be performed : Identify necessary countermeasures that should be performed by users for preventing their systems from various malware threats.

Which do you think is the most effective : There are three major ways health care providers can control their revenue function.

What nominal annual rate of return would you receive : A well-known industrial firm has issued $1000 bonds that carry 4% nominal annual interest paid semiannually. The bonds mature 20 years from now.

What rate of return will the man receive : A man buys a corporate bond from a bond brokerage house for $925. The bond has a face value of $1000 and pays 4% of its face value each year.

User Account

All Pages