Zero-coupon bond-what was your total return for past year

Assignment Help Financial Management
Reference no: EM131048805

You purchased a zero-coupon bond one year ago for $281.83. The market interest rate is now 9 percent. Required: If the bond had 15 years to maturity when you originally purchased it, what was your total return for the past year? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Total return for the past year

Reference no: EM131048805

Questions Cloud

How does this complicate the job of dns : How does this complicate the job of DNS? How does this affect the problem of finding your local DNS server?
Report on things happening outside the u.s. : For this assignment you will research and report on things happening outside the U.S. relative to many of the issues we have covered in this class. Compare and contrast U.S. and global companies doing business around the world and their behaviors ..
What is the project net present value : Assuming that the hospital is a non-profit entity, what is the project's net present value (NPV) at a discount rate of 8%, and what is the project's IRR
Program that manipulates a database of product records : program should allow the user to add a record, find a record that matches a product name, and change the price and quantity of a product by a given amount.
Zero-coupon bond-what was your total return for past year : You purchased a zero-coupon bond one year ago for $281.83. The market interest rate is now 9 percent. Required: If the bond had 15 years to maturity when you originally purchased it, what was your total return for the past year?
Write a response paper on bruised hibiscus : Your paper should be 1-2 pages in length, typed, double spaced, 12 point font. Your paper is due in class on Monday, May 9. Please write a response paper on Bruised Hibiscus.
Planned increase in net working capital : Eagle Products’ EBIT is $400, its tax rate is 30%, depreciation is $16, capital expenditures are $56, and the planned increase in net working capital is $25. What is the free cash flow to the firm?
Describe the elements of self-concept : Describe the elements of self-concept, and explain how they affect an individual's behavior and well-being. Share a related personal experience.
Tangible and intangible resources of screen tasmania : BMA799 Strategic Management Capstone Assessment Written Report. Resources - what are the tangible and intangible resources of Screen Tasmania? What resource constraints do they face and how may these be overcome

Reviews

Write a Review

Financial Management Questions & Answers

  How do credit managers manage the risks

How do credit managers manage the risks related to extending trade credit? Aside from late or non-payment, what other risks do you see with trade credit?

  Mandolin bottlers co. has net income

Mandolin Bottlers Co. has net income of $4,272,335 and retains65 percent of its income every year. If the company's internalgrowth rate is 8.6 percent, what is the firm's total assets?

  State of alabama has legally earmarked

The state of Alabama has legally earmarked around 85 percent of its state budget.

  What is the price of this preferred stock

Tell Corporation plans a new issue of preferred stock paying annual dividend $5 per share. Similar risk stock currently offers an annual return to investors of 17%. What is the price of this preferred stock?

  Find cost of debt - estimate cost of equity

How you estimated the percentage of capital that comes from debt, and common equity - find cost of debt

  Calculate the PV of cash inflows

A factory costs $498,400. You forecast that it will produce cash inflows of $200,074 in year 1, $155,000 in year 2, and $340,000 in year 3. The discount rate is 10.50%. Calculate the PV of cash inflows. Should the company invest in the factor?

  Considering the purchase of two machines

ACE Co. is considering the purchase of two machines. Machine A costs $100,000 with annual cost of $20,000. It will last for 5 years, and have a salvage value of $5,000 at the end of 5 years. Machine B costs $145,000 with annual costs of $17,500, and ..

  What will be your rate of return if price of telecom stock

You are bullish on Telecom stock. The current market price is $80 per share, and you have $9,000 of your own to invest. You borrow an additional $9,000 from your broker at an interest rate of 9% per year and invest $18,000 in the stock. a. What will ..

  The total asset turnover ratio

You are given the following financial data for Company A: Cash = $6,000; inventories = $1,000; accounts receivable = $700; other current assets = $500; long-term assets = $1,000; accounts payable = $800; other current liabilities = $4000; net income ..

  What is the theoretical value of a right

The common stock of the Tangerine Tube Company is currently selling for $75 a share. Under the terms of a rights offering, the present stockholders will be able to purchase a share at $60 a share for each 5 shares of common held. What is the theoreti..

  Does fair value accounting fairly portray economic situation

Does fair value accounting fairly portray the economic situation of a company or does it unfairly exacerbate any short-term problems a company is having? Why?

  Calculate the total market value of the firms debt

Wolverine Corp. currently has $5,000,000 in equity outstanding and $1,000,000 in debt outstanding. The firm currently has 500,000 shares of common stock outstanding. The firm is contemplating issuing an additional $1,000,000 in debt and using the pro..

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