Compute the rate of return per quarter for each bond

Reference no: EM13310498

A company issues corporate bonds that have a coupon rate of 4%, pays dividends quarterly, and has a term of 10 years. Compute the dividend paid per quarter for each bond.

An investor buys 50 of these bonds at face value, and keeps them for the full 10 years. Compute the rate of return and express the answer to the nearest 0.01%.

An investor buys 50 of these bonds at the discounted price of $95.00 and keeps them for the full 10 years. Compute the rate of return. Express your answer to the nearest 0.01 percent

Reference no: EM13310498

Questions Cloud

Ship owners lien and maritime lien : Differentiate between the following: (a) Ship Owner's Lien and Maritime Lien (b) Air transport and Rail Transport (c) Heavy Lift Surcharge and Long Lift Surcharge (d) Re-order Level (ROL) and Re-order Quantity

Explain the actual structure of formate is an average : Each carbon-oxygen bond is somewhere between a single and a double bond. 3.Each oxygen atom has a double bond 50% of the time 4. The actual structure of formate is an average of the two resonance forms

Determine what is the hydraulic conductivity of the sand : it was observed that the quantity of the water flowing through the sand layer into the collection ditch is 250 m^3/day. What is the hydraulic conductivity of the sand (k)

How to evaluate the equilibrium constant for the reaction : A reaction has a standard free-energy change of -14.00 kJ mol-1 (-3.346 kcal mol-1). Calculate the equilibrium constant for the reaction at 25 °C.

Compute the rate of return per quarter for each bond : A company issues corporate bonds that have a coupon rate of 4%, pays dividends quarterly, and has a term of 10 years. Compute the dividend paid per quarter for each bond.

Explain standard free energy of activation of one reaction : The standard free energy of activation of one reaction A is 85.50 kJ mol-1 (20.43 kcal mol-1). The standard free energy of activation of another reaction B is 78.70 kJ mol-1 (18.81 kcal mol-1).

Calculate the surface area and hydraulic retention time : Calculate the surface area (m2), diameter (m), volume (m3), and hydraulic retention time of a 3 m deep circular, primary clarifier that would remove 50 percent of suspended solids. Assume the surface overflow rate (SOR) used for design is 60 m3/m2-..

Create the relational model : Create the relational model corresponding to the described application. Basically, list the CREATE TABLE statements with the attribute names, and appropriate data types.

Define a coin dealer offered a rare silver coin : A coin dealer, offered a rare silver coin, suspected that it might be a counterfeit nickel copy. The dealer heated the coin, which weighed 18.0 g to 100°C in boiling water and then dropped the hot coin into 26.5 g of water at T = 16.5°C in an insu..

User Account

All Pages