Bart total return from bond investment

Assignment Help Finance Basics
Reference no: EM131429112

Today, Bart Simpson sells an annual coupon $1,000 par value bond with a 8% coupon rate with 7 years left to maturity for $1,050. Bart bought this bond a year ago when the bond had a yield to maturity of 8.5%. What is Bart's total return from this bond investment?

A) 16.3%

B) 15.1%

C) 13.0%

D) 8.5%

E) 8.0%

Reference no: EM131429112

Previous Q& A

  Find the frequency of the resulting vibration

If corner B is given a small displacement and released, determine the frequency of the resulting vibration. Assume that each spring can act in either tension or compression

  Identify the pathophysiology of the disorders presented

Jennifer is a 2-year-old female who presents with her mother. Mom is concerned because Jennifer has been "running a temperature" for the last 3 days. Mom says that Jennifer is usually healthy and has no significant medical history. She was in her ..

  Relationship between power and energy

1. Determine the NPV for discount rates between 1% to 5% with an increment of 1% (this is the opportunity cost of your money-say what you would get in a money market account)

  Determine the period of vibration

A 15-lb uniform cylinder can roll without sliding on an incline and is attached to a spring AB as shown. If the center of the cylinder is moved 0.4 in. down the incline and released,

  What is the pretax cost of debt

DL Trucking has a cost of equity of 14.4 percent and an unlevered cost of capital of 13 percent. The company has $20,000 in debt that is selling at par value. The levered value of the firm is $46,000 and the tax rate is 35 percent. What is the pre..

  Find centroidal radius of gyration of the connecting rod

A connecting rod is supported by a knife edge at point A; the period of its small oscillations is observed to be 1.03 s. Knowing that the distance ra is 150 mm, determine the centroidal radius of gyration of the connecting rod.

  Receive an annual retirement payment

EZ Leifer plans to retire at the age of 65 and believes he will live to be 90. EZ wants to receive an annual retirement payment of $ 50,000 at the beginning of each year. He sets up a retirement account that is estimated to earn 6 percent annually..

  Which health care laws are still in practice

Medicaid became law (Fremgen, 2012). The growth rate of the older adult population and the remarkable technological discoveries and applications, such as heart and kidney transplants and mobile mammogram units, are just a few of the developments t..

  What is the current stock price

The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.80 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. Investors require a return of 11 percent on the company's stock.

  How would the price change

How would the price change if there were 30 years left to maturity instead of 8? You must explain your answer and show your calculator inputs (Ex: N=?, I=?, PV=?,PMT=?,FV=?) to receive full credit.

Reviews

Write a Review

 

Similar Q& A

  Future value of tax-advantaged

Susan Lee who is 26 years-old has new job with Inspiron. She is planning to start her own business in eight years so she has two options to start saving money to open her shop:Please show the computation for each of option and describe which of th..

  Calculation of weighted average cost of capital

Calculation of weighted average cost of capital from given data and The company anticipates issuing new common stock during the upcoming year

  What would your balanced four years

Suppose you deposited the $1000 in 4 payments of $250 each at year 1, year 2, year 3, and year 4. How much would you have in your account at year 4, based on 8 percent annual compounding?

  What is shadows cost of equity

Shadow corp. has no debt but can borrow at 6.5%. The firm's WACC is currently 10.4% and the tax rate is 35%.

  Company has a beta of 325 and a standard deviation of

company has a beta of 3.25 and a standard deviation of returns of 27. the return on the market portfolio is 13 and the

  Which one of the following is an example of systematic risk

Which one of the following is an example of systematic risk?

  Time value of money pv-fv

If company B has the $100,000 cash today, and invested it at a rate of the 10% for each year for two years, how much will they have in two years?

  Calculation of irr, npv of a project with equal cash flows

Calculation of IRR, NPV of a project with equal cash flows through life and what is the project's IRR

  Covariance between returns on vbn and wilshire

i) Calculate the covariance between the returns on VBN and the Wilshire 5000 index. ii) Does VBN's returns move with or against the returns on the Wilshire 5000? iii) Is VBN highly, moderately, or barely sensitive to fluctuations in the Wilshire 5000..

  Computation of pv and future annual payments

Computation of PV and Future Annual Payments and principal amount and Compute the original principal amount

  What is the present value of a deferred perpetuity

If r is the annually compounded interest rate, what is the present value of a deferred perpetuity with annual payments of C beginning t years from now?

  Making of comparative income statement

Making of comparative income statement with horizontal analysis and Prepare a comparative income statement with horizontal analysis for the two-year period using 2007 as the base year

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