What would be the total return of the bond in dollars

Assignment Help Financial Management
Reference no: EM13723813

A 6.60 percent coupon bond with 15 years left to maturity is priced to offer a 5.3 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.0 percent.

What would be the total return of the bond in dollars?

What would be the total return of the bond in percent?

Reference no: EM13723813

Questions Cloud

Define corporate social responsibility : Write a persuasive essay either supporting or denying the veracity of the theme statement. The argument should include a discussion of the differences between corporate social responsibility and the triple bottom line concepts.
Have the directors of gml breached their duty of care : As a director of FWPL, he owes duties to the company. But does he owe any duties to Simon in these circumstances -  Have the directors of GML breached their duty of care?
Develop environmental analysis include competitive forces : Develop an environmental analysis that includes competitive, economic, political, legal, technological, and sociocultural forces
Create a set of performance management guidelines : Create a set of performance management guidelines to be included in the procedural manual used to train managers. Your process should describe the performance management plan from a procedural perspective, defining actions that need to be taken an..
What would be the total return of the bond in dollars : A 6.60 percent coupon bond with 15 years left to maturity is priced to offer a 5.3 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.0 percent. What would be the total return of the bond in dollars? What would b..
A balance sheet shows a total of no callable : A balance sheet shows a total of no callable $41 million long-term debt with a coupon rate of 8.10% and a yield to maturity of 8.50%. This debt currently has a market value of $52 million. The balance sheet also shows that the company has 9 million s..
What is maximum price you should be willing to pay for bond : Assume that you are considering the purchase of a 11-year, no callable bond with an annual coupon rate of 8.60%. The bond has a face value of $1000, and it makes semi-annual interest payments. If you require an 11.70% yield to maturity on this invest..
Describe any one concept that you heave learned : For this week's learning activity, choose and describe any one concept (PESTEL analysis) that you heave learned in this class and that you feel is applicable to your work
To pay for her college education : To pay for her college education, Gina is saving $2,000 at the beginning of each year for the next eight years in a bank account paying 12 percent interest. How much will Gina have in that account at the end of 8th year?

Reviews

Write a Review

Financial Management Questions & Answers

  Considering adopting the income tax

Suppose the state of California approved the use of local option income taxes (personal and corporate). You work in the finance department of a county government and the country is considering adopting the income tax.

  Explain what are the percentage return on investment

One year ago, you puchased 94 shares of ABC stock for $20.9 per share. During the year, you received a dividend of $3.2 per share. Today, you sold all your shares for $25.3. What are the percentage return on your investment

  You are looking at viacom bonds in which there remain 20

you are looking at viacom bonds in which there remain 20 years to maturity. the current price of a 1000 par bond is

  What would be the potential implications for delta

When is it appropriate to use the firm's weighted average cost of capital (WACC) to evaluate a proposed investment and what would be the potential implications for Delta if WACC is used to evaluate the pet supply project?

  What is the value of this periodic deposit

What is the value of this periodic deposit? Give a detailed explanation on your calculations and what is the sum of their present values? Give a detailed explanation on your calculations.

  Long-term exchange rate risk

Discuss the topic:"Does Purchasing Power Parity (PPP) eliminate concerns about long-term exchange rate risk?" One of the most popular and controversial theories in international finance is the Purchasing Power Parity Theory, which attempt to quant..

  What do you think is googles biggest challenge

What is it like to work at Google? (Hint: Go to Google's website and click on "About Google'. Find the section on jobs at Google and go from there.) What is your assessment of the company's work environment?

  What would have been her return in yen

Benjamin Pinkerton from New York invested in a U.S. two-year zero-coupon bond at the start of the period and sold it after one year. What was his return?

  Calculate the dollar amount of purchases

Calculate the dollar amount of purchases and then using that result , calculate the dollar amount of cash paid to suppliers using the following data

  Depth analysis of the performance of the company

Provide a brief summary of additional information which you would require in order to enable a more in depth analysis of the performance of the company and comment upon the financial position of JH Alarms plc in the light of the last three years' ..

  Options to be as profitable as an investment in the stock

The price of a stock is $25 and the price of a three-month call option on the stock with a $27 strike is $2.50. Suppose a trader has $2,500 to invest and is trying to choose between buying 1,000 options (10 contracts) or 100 shares of stock. How high..

  You are the financial manager of north plc a listed

you are the financial manager of north plc a listed manufacturing company which has divisions in a number of countries

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