What rate of return would you have earned

Assignment Help Finance Basics
Reference no: EM13267470

Six years ago you bought a bond for $1,036. The bond had 15 years until maturity, a coupon rate of 11% with semiannual payments, and a face value of $1000. Today the bond is worth $982. If you sold the bond today, what rate of return would you have earned on your investment?

Reference no: EM13267470

Questions Cloud

Estimate the wavelength of light : Two slits are separated by .1 mm. Planar light incident on them produces a diffraction pattern on a board 1.35 m away, estimate the wavelength of light
What is the percentage of distortion level at the frequency : The sampling frequency in a DSP system is fs = 8khz kHz. A hold circuit is used after the DAC device. What is the percentage of distortion level at the frequency f= 3.4 kHz
Express the concentration of an aqueous solution of fluoride : Express the concentration of a 0.0510 M aqueous solution of fluoride, F-, in mass percentage and in parts per million. Assume the density of the solution is 1.00 g/mL.
What is orange cost of common equity : The target capital structure of Orange Corporation is 40 percent common stock, 10 percent preferred stock, and 50 percent debt.
What rate of return would you have earned : If you sold the bond today, what rate of return would you have earned on your investment?
What is the depth of the water in the box : A hollow cubical box is 0.30 m on an edge. What is the depth of the water in the box just at the instant that water from the lake begins to pour into the box from the lake
What is the fair price for this stock : A stock expects to pay it's first ever dividend of $1 five years from today. From that point onward, dividends are expected to grow by 10% per year forever. What is the fair price for this stock if it has a required return of 14%?
Explain what maximum mass of nitrogen monoxide : If 750 grams of ammonia and 750 grams of oxygen gas were mixed, what maximum mass of nitrogen monoxide could be produced
Find how much time is available to change the data : The frequency of a clocking signal is 10MHZ and it is used to sample serial data stream. If the data must be stable for 15ns before the leading clock edge and for 10ns after the leading clock edge, how much time is available to change the data bet..

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine annual financing cost

Walters Manufacturing Corporation has been approached by a commercial paper dealer offering to sell an issue of commercial paper for the company. The dealer indicates that Walters could sell a $5 million issue maturing in 182 days at an interest rate..

  Foundations of financial management

Mr. Frost controls proxies for 32,000 of the 60,000 outstanding shares of Express Frozen Foods, Corporation Mr. Cooke heads a dissident group that controls the remaining 28,000 shares.

  Currency exchanges

What happens to the dollar price that a U.S. (a) importer pays and (b) exporter receives if prices are agreed in euros and the dollar then appreciates by 10 percent with respect to the euro?

  Calculating the amount required for a family

Your daughter is a starting freshman in high school. By the time she enters freshman year in college, you would wish to have savings accumulated to pay her tuition for her next 4-years of college.

  Determining the correlation among two or more variables

1.What is correlation and when would a researcher be interested in determining the correlation among two or more variables?

  What is the internal growth rate

Healthy Foods has total assets of $124319, net fixed assets of $79775, long-term debt of $51692, and total debt of $78769. If inventory is $31,800, what is the current ratio? Round your answer to two decimal places.

  Computation of effective annual return

Computation of effective annual return and rate of return also what is ratchets rotator's rate of return

  What is the firms cost of debt

If Imaginary is subject to a 40 percent marginal tax rate, then what is the firm's cost of Debt?

  Compute current yield on the bonds

Martin Software has 9.4% coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 107.5% of par.

  Journal entries-bond issuance and premium amortization

Celine Dion Company issued $600,000 of 10% 20-year bonds on January 1, 2008, at 102. Prepare the journal entries to record the following.

  What types of decisions do financial executives

What types of decisions do financial executives make which impact earnings? What general rules should these executives follow in making these decisions?

  Determine the correct statement

Jordan wants to retire in 15 years when he turns 65. Jordan wants to have enough money to replace 75% of his current income less what he expects to receive from Social Security at the beginning of each year. Determine the correct statement

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