What the realized yield on the bond investment

Assignment Help Financial Accounting
Reference no: EM132979176

Question - An investor purchases a five-year, 6% annual-coupon payment bond at 89.4535 and sells it in four years. Following the purchase of the bond and prior to the receipt of the first coupon, interest rates go down to 8.5%. What the realized yield on the bond investment?

Reference no: EM132979176

Questions Cloud

How many books must be sold to break even : How many book must be sold to break even? A book publisher has fixed costs of $450,000 and variable costs per book of $12.00. The book sells for $32.00 per copy
Define vertical integration : -Define vertical integration. What are the two primary types of vertical integration? Explain why vertical integration and vertical coordination are not synonym
Calculate the flexed budget cost for July : Any output level over 4,500 units requires an extra £200 spending on the maintenance of equipment. Calculate the flexed budget cost for July
Compute the updated current ratio after each transaction : Compute the updated current ratio after each transaction, by showing the cumulative effects of transactions. Good Sports, Inc., is a private full-line sporting.
What the realized yield on the bond investment : An investor purchases a five-year, 6% annual-coupon payment bond at 89.4535 and sells it in four years. What the realized yield on the bond investment
George identifying key points and examples for the report : George identifying key points and examples for his report. George is recently appointed in the Accounts department of Qantas Airline.
Processing of raw materials for growth : Focus on the plant growth mechanism, with emphasis on the structures that are responsible for the acquisition and processing of raw materials for growth
What the restrospective adjustment to retained earnings : You were engaged to audit, for the first time, What the restrospective adjustment to retained earnings as a result of your audit in 2020 shall be
What weighted average required returns on investment : Using the CAPM approach, what weighted average required returns on investment would you recommend for these two divisions

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the initial cost of the building

The building is held to earn lease rentals and for capital appreciation. An appropriate discount rate is 10%. What is the initial cost of the building?

  What is the total allowable amount of child tax

What is the total allowable amount of child tax and/or dependent credits Brienne and Tormund can claim on their 2019 tax return?

  Can elect to switch to the other method at a later stage

Where an entity elects to use either cost or fair value as the basis for measuring property, plant and equipment, can it elect to switch to the other method

  Solve the cost of the plant as at january

Calculate the Cost of the Plant as at 01 January 2016. The company uses the REVALUATION MODEL and Revalues its plant on an annual basis.

  Provide the journal entries to record the transactions

On this date, the market value of the share portfolio is $2,850,000 and the All Ordinaries Index is 2900 points. Provide journal entries to record transactions

  Find what is the price of a par value

Find What is the price of a $1000 par value, semi annual coupon bond with 6 years to maturity, A coupon rate of 07.10% and a yield to maturity of 5.50%?

  Calculate the expected return for MTN and Dischem

Calculate the expected return for MTN and Dischem. Calculate the expected return of the portifolio assuming that you invested 35% in MTN and 65% in Dischem

  How much loss from the sale on december of year

How much loss from the sale on December 30 of year 4 is deductible on Adrian's year 4 tax return? What basis does Adrian take in the stock purchased on January

  Qualified technological equipment

A taxpayer purchased for $1,000,000 and placed in service "qualified technological equipment" during April of 2016. It is 5 year property. What is the appropriate MACRS deduction in 2016? What is the appropriate MACRS deduction in 2017?

  Prepare the journal entries and adjusting entries

Wally’s Widget Company (WWC) incorporated near the end of 2011. Operations began in January of 2012. WWC prepares adjusting entries and financial statements at the end of each month. Prepare the February journal entries and adjusting entries:

  Calculate the actual labor rate-actual price per unit

Mersey Company produced 1,000 trash cans during March using 450 direct labor hours and purchased and used 3,100 pounds of rubber. Its materials and labor standards are: Calculate the actual price per unit. Determine the labor efficiency variance and ..

  Differences in culture-social values-political systems

How do differences in culture, social values, political systems, technology and economic systems impact mergers/acquisitions in this global environmental?

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