What will your annualized holding period return

Assignment Help Finance Basics
Reference no: EM13303792

You buy a 24 year bond with a 10% coupon rate, a YTM of 4% and a $30,000 face value. What will your annualized holding period return (HPR) on this investment be if you hold the bond for 6 years, the YTM on the bond when you sell it equals 12% and you can reinvest coupons at 6%? Express your answer in without a percent sign, using 3 decimals (12.345% = 12.345).

Reference no: EM13303792

Questions Cloud

What is the present value of the bond rounded : What is the present value of the bond rounded to the nearest cent?
Case study on court visit & report : Case Study On Court Visit & Report
Calculate the speed of the bottle : A woman on a bridge 86.8 m above a stream sees a bottle floating along at a constant speed. Calculate the speed of the bottle
Review of ssps financial performance and position : Investigate and identify the reason for the early payment of suppliers. If there is none, make more use of this source of short term finance.
What will your annualized holding period return : What will your annualized holding period return (HPR) on this investment be if you hold the bond for 6 years.
Commercial prawn trawlers claim against megabucks : What action or actions in tort may the commercial prawn trawlers claim against Megabucks Ltd?
Determine the peak voltage applied across the bulb : A certain lightbulb is rated at 165 W when operating at an rms voltage of 1.5 V. What is the peak voltage applied across the bulb
What is evanec cost of new common stock : The Evanec Company's next expected dividend, D1, is $3.18; its growth rate is 6%, and its common stock now sells for $36.00. New stock (external equity) can be sold to net $32.40 per share.
At what rate of interest would you need to invest : At what rate of interest would you need to invest in order for a savings of $20,000 per year to be worth one million dollars after 25 years?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is your expected starting salary

Without considering the additional educational years or the time value of money, what is your expected starting salary as well as the standard deviation of that starting salary?

  Computation of npv of the project at various interest rates

Computation of NPV of the project at various interest rates and what is the NPV of this project if the five-year interest rate is

  What is the value of the firm according to mm

Your firm has debt worth $200,000, with a yield of 9%, and equity worth $300,000. It is growing at a 5% rate, and its tax rate is 40%. A similar firm with no debt has a cost of equity of 12%. What is the value of the firm according to MM with corp..

  Explain decision making on the basis of the irr and npv

Explain decision making on the basis of the IRR and NPV criterion and Compute the net present value for each project if the firm has a 10% cost of capital. Which project should be adopted

  Journalize nhs''s issuance of the bonds

NHS Co. issued $350,000 of 10-year bonds payable on January 1. NHS pays interest each January 1 and July 1 and amortizes any discount or premium by the straight-line method. NHS issued the bonds at a price of $430,000 when the market rate was belo..

  Find the lump sum amount today equal to present value

How much money is required to invest today to have a lump sum of $100,000 in 40 years if the interest rate is 12.5% compounded yearly?

  Which alternative is better deal

Assume that if you take the rebate, you will apply it toward the purchase. Which alternative is better deal?

  Compute of the financial performance of the company

Compute of the financial performance of the company with the help of the ratios and industry average

  What has the inflation rate been on gas

You currently have $400,000 and expect to spend $30,000 per year for twenty years. If the interest rate is 8%, how much will you have or how much will you owe in twenty years?

  What is the cost of common equity capital for the firm

If the current price of Two-Stage's common stock is $28.98, what is the cost of common equity capital for the firm?

  What is the nominal interest rate for this credit card

A department store has offered you a credit card that charges interest at 1.65% per month compounded monthly. what is the nominal interest (annual percentage) rate for this credit card? what is the effective annual interest rate?..please show work

  Compute company net working capital

The Centennial Chemical Corporation declared that for the period ending March 31, 2008, it had earned income after taxes worth $5,330,275 on revenues of $13,144,680.

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