Your coupons until the end of ten year investment horizon

Assignment Help Financial Management

Reference no: EM131865288

You buy a bond at time zero. the yield to maturity is 6%, the annual coupon is 5%, the redemption value is 100, and there are 10 years to maturity. after the fourth coupon payment the increases to from 6% to 8% and rekindle mains there. you buy the bond at time zero and reinvest your coupons until the end of a ten year investment horizon.

What is your horizon yield for this investment .

(in percent x.xx without a percentage sign.)

Reference no: EM131865288

Questions Cloud

What everyone in economy would buy at different aggregate : Aggregate supply Combination of the overall price and quantity at which neither buyers or sellers wish to change their purchases sales, or price

The Expenditures approach-what was the level of GDP : According to the above information, using the Expenditures approach, what was the level of GDP in the U.S. economy in the first quarter of 2010?

Describe the purpose of the paper and provide an overview : Your assignment will be submitted to the D2L dropbox by the date on the course schedule. It should be in informal point form, but stillusing APA paper format.

Person earn interest if the interest is compounded annually : At which rate does the person earn interest if the interest is compounded annually?

Your coupons until the end of ten year investment horizon : you buy the bond at time zero and reinvest your coupons until the end of a ten year investment horizon. What is your horizon yield for this investment .

Real gdp and cpi data : For the real GDP and CPI data, you need to calculate the real GDP growth rate and the inflation rate. Be sure to show your work.

Examine legal and ethical issues related to judicial : Explain different techniques used to process non-biological trace, biological, and digital evidence in the field, as well as a laboratory setting.

Write about a career in which you might be interested : Gather information about a career or position in which you might be interested learn about and report on the nature of job

Assuming the consumer is rational : Assuming the consumer is rational, which will they choose to purchase? Why? Hint: why they choose one over the other might have something to do with utility

User Account

All Pages