What one-year rate of return from holding the bond is

Assignment Help Microeconomics
Reference no: EM132135744

Question: An investor buys a coupon bond and holds it for exactly one year and then sells it in a secondary market prior to maturity. The investor buys it for $4,000, sells it one year later for $4,300 and receives a coupon payment of $500. Then the one-year rate of return from holding this bond is?

Reference no: EM132135744

Questions Cloud

Why does a government undertakes expansionary fiscal policy : Why does a government undertakes expansionary fiscal policy? What are the problems of undertaking expansionary fiscal policy?
What is the role of local government leadership : What is the role of local government leadership in assuring that departments and divisions work together to achieve municipal goals and objectives?
How do the career stages of super or those of dalton : How do the "career stages" of Super and/or those of dalton and Thompson fit your concept of your own career?
Identify a recent merger-acquisition : Identify a recent merger/acquisition and use it to and explain: was the merger/acquisition predominately about gaining economies of scale or economies scope?
What one-year rate of return from holding the bond is : An investor buys a coupon bond and holds it for exactly one year and then sells it in a secondary market prior to maturity. The investor buys it for $4,000.
Calculate the equilibrium value of income : Calculate the equilibrium value of income. Calculate the value of the multiplier. Calculate the value of total consumption when the economy is in equilibrium.
Program will prompt user to enter a single digit integer : Assumptions: your program is to be loaded at location x3000. Data will reside at location x7000. Your program should be written in assembler.
Weekly wage and quantity of teachers in school : Assume the demand for teachers (Ld) in a school is given by the following equation: W = 1700 - 2LD and the supply of teachers (LS)
Write the statements are true or false : For the following questions write whether the statements are true or false and give full justification for your answer

Reviews

Write a Review

Microeconomics Questions & Answers

  Define the rybczynski theorem

Start at the no-trade equilibrium point A on the Home PPF in Figure 4-2, panel (a). Suppose that through immigration, the amount of labor in Home grows.

  Why is it important that prices are flexible in our economy

Why is it important that prices are flexible in our economy? Do you think the government should control level of prices for products that are really important.

  Determine how organizations such as mbe

Determine how organizations such as MBE can help business owners put at least one of the models built around social networks into practice.

  What would be the impact on savings

In the two-period model the consumer aimed to die with zero assets. What would be the planning horizon of parents who wished their children to enjoy the same standard of living they experienced? What is the planning horizon if every generation fee..

  What are the strategic imperatives for action for haier

What are strategic imperatives for action for Haier to successfully balance international expansion with its need to deepen its home country competitiveness.

  What are the employment effects of minimum wages

Through which channels does a binding minimum wage affect employment? Illustrate this effect with a diagram. According to recent research what are the employment effects of minimum wages?

  How do you think the increases in the budget deficits

How do you think the increases in the budget deficits and the national debt will affect the economy in the future?

  Define total lendable deposits in the banking system

Assume that all banks in the banking system have a 10% reserve requirement. Further, assume that all banks in the banking system are fully loaned up both before and after Joe makes his deposit.

  Let x denote mean age of random sample of n 50 students

the average of freshman college students is 18.5 years with a standard deviation 0.4 years.a. let x denote the mean

  Examining the effects of treatment conditions on males

The study is a two-factor design examining the effects of two treatment conditions on males and females. Gender (male vs female) is one factor (defined as Factor A in the problem) and this is a between subjects factor (because there are different ..

  Why the policy would yield an inefficient outcome

What could be responsible for this pattern - a rise in the price of flour or a rise in the price of milk? Illustrate and explain your answer with demand and supply diagram for bagel

  Derive the firm''s trace function

A monopolist cubic cost function is TC = 0.08Q3:- 8.2Q2:+ 2000Q + 32000 If the market demand function for the firm's product is P = 3400 - 4Q- Derive the firm's trace function.

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