What rate of return will william earn on this investment

Assignment Help Finance Basics
Reference no: EM132139858

William purchased a $1,000 par value bond with a 12 percent coupon rate and 9 percent yield to maturity. William will hold the bond until it matures. What rate of return will William earn on this investment?

10.5%

12.0%

9.0%

more information is needed to answer this question.

Reference no: EM132139858

Questions Cloud

Calculating annuity present values : Calculating annuity present values. Beginning three months from now, you want to be able to withdraw $2,500 each quarter from your bank account
How much money did the attorney think he had in his account : How much money did the attorney think he had in his account before he learned of the fraud?
Determine the bond price elasticity : The required rate of return on a certain bond changes from 12 percent to 8 percent, causing the price of the bond to change from $900 to $1,100.
What is the price of the bond : Investors' required rate of return is 12 percent. What is the price (present value) of the bond?
What rate of return will william earn on this investment : William will hold the bond until it matures. What rate of return will William earn on this investment?
Difference between systematic versus unsystematic risk : What is the difference between systematic versus unsystematic risk?
Sensitivity of npv to changes in quantity supplied : What is the sensitivity of NPV to changes in quantity supplied? (Do not round intermediate calculations and round your final answer to 2 decimal places.
Construct an amortization schedule : Construct an amortization schedule for the $300,000 loan with a 3.5% interest rate compounded monthly. The loan will be paid back in 15 years making monthly pay
What is the real risk premium using the exact fisher : We also know that the average inflation rate and average risk-free rate over the last 10 years are 2% and 5%, respectively.

Reviews

Write a Review

Finance Basics Questions & Answers

  How large will your deposits need to be

If the stock fund returns 7.5% annually how large will your deposits need to be?(remember , you are placing the same amount into both the fixed and the stock fund, therefore the accts will not have values of 500k each at the end in yr 2035.

  How are stock price and earnings per share related

How are stock price and earnings per share related? If you were an investor, how would you analyze the performance of a publicly traded company?

  Options provides a higher rate of return

Assume the "going rate of interest" is currently 7.0%. All else equal, which of these two options provides a higher rate of return?

  What will the cash flow for the year be

Mary owns a floral and gift shop valued at $150,000. If she keeps the shop open 5 days a week, EBIT is $75,000. If the shop remains open 6 days a week EBIT.

  Percent of the market value of home

Assuming Michael can borrow up to 78 percent of the market value of his home, what is the maximum amount he can borrow?

  What are the major sources of funds for commercial banks

What are the major sources of funds for commercial banks in the United States? What are the major uses of funds for commercial banks in the United States? For each of your answers, specify where the item appears on the balance sheet of a typical c..

  Is sales taxes are generally applied to food in restaurants

Drawing Conclusions Why do you think sales taxes are generally applied to food and beverages purchased in restaurants, but not to those purchased in stores?

  How might betty''s dress shop use internet advertising

How might Betty's Dress Shop use Internet advertising to their benefit?

  Determine the premium charges

Research indicates that the 1,000,000 cars in your city experience unrecoverable losses of $250,000,000 every year from theft, collisions, etc.

  Number of equipment sales and service contracts

Suppose the number of equipment sales and service contracts that a store sold during the last six (6) months for treadmills and exercise bikes was as follows:

  Which investment has the highest effective annual ror

You are considering three different investments: one paying 7% compounded quarterly; one paying 7.1% compounded annually.

  What if you wait 10 years before contributing

What if you wait 10 years before contributing? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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