User Account

All Pages

What would be the profit and rate of return of this investor

Assignment Help Financial Accounting
Reference no: EM132951517

Question - An investor, in primary market, has just purchased the bond of IBM which has a face value of $1,000 and coupon interest rate of 9%. Although the investor prefers to keep this bond till the maturity of 8 years, considering the changes in market interest rate he is also ready to sell it if the price is reasonable. Assume that market interest rate (r) decreases to 6% from 10% after 5 years. What would be the profit and rate of return of this investor in case he decides to sell this bond at the end of year 5?

Reference no: EM132951517

Questions Cloud

What is the percentage cost of new-issue common stock : Given a transaction (flotation) costs of 5% for newly issued common stock, what is the percentage cost of new-issue common stock for Scannell
What is the probability her team ties the game : A basketball player has historically made 73.2% of her free throws this season. The player's team is down by 1 point, but she is fouled at the buzzer.
Find the probability that a single randomly selected policy : Business Weekly conducted a survey of graduates from 30 top MBA programs. On the basis of the survey, assume the mean annual salary for graduates 10 years after
Record the sale of treasury stock : California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $29 per share. Record the sale of treasury stock
What would be the profit and rate of return of this investor : Assume that market interest rate (r) decreases to 6% from 10% after 5 years. What would be the profit and rate of return of this investor
What is the monthly payment necessary to amortize this loan : The annual interest rate on the loan is 7.25%, and the term of the loan is 15 years. What is the monthly payment necessary to amortize this loan
What the initial investment : Question - A project with a profitability index of 1.156 also has net cash flows with a present value of $71672. What the initial investment
Compute the Dividend payable on December : On December 31, 2019, the carrying amount of a one-bedroom flat is P1.000,000. Compute the Dividend payable on December 31, 2019
Calculate the lower bound of the confidence interval : The Gallup poll conducts a survey of 1400 Americans to find out what proportion is in favor of legalizing Marijuana at the state level and having states

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd