Reference no: EM131411609
Consider a 25 year coupon bond with a face value of $1,000 that pays $84 annual coupons(beginning one year from today). Suppose that you bought the bond at issue for $922.18. Answer the following questions.
a. What is the yield to maturity for the bond?
b. What is the total return on the bond?
a. What is the yield to maturity for the bond?
Solving for kd, the yield to maturity is _______%.(Round to two decimal places.)
b. What is the total return on the bond?You buy the bond described above and you invest each coupon in a bank that pays 8.4%interest. On the maturity date, how much money do you have(in total) from the bond? Using the bond price and that future value, what is your compound annual total average return on the investment over the 25 years?
Step1: Future Value of Bond Cash Flows The future value of coupons is $________. (Round to the nearest cent.)
The future value of bond's cash flows is $__________. (Round to the nearest cent.)
Step2: Compound Annual Total Average Return The compound annual total average return is _______%.(Round to two decimal places.)
|
Explain the use of tvm in business
: ow would you explain the use of TVM in business? What considerations are made when calculating TVM? How can you use TVM to create your own, or someone else's retirement plan?
|
|
Analyze the manner in which pharmacare used us law
: Analyze the manner in which PharmaCARE used U.S. law to protect its own intellectual property and if John has any claim to being the true "inventor" of AD23.
|
|
Discuss the most salient components of these standards
: Compare and contrast the two sets of standards. What features do they have in common? How do they differ and discuss the relevance of these standards to the social/emotional and academic development of children. Why should these practices be in pla..
|
|
Discuss the strategic plan of the organization
: The importance of Training new employees on the role of HRM planning and its relationship to the strategic plan of the organization" Consider using visual aids and graphics to enhance your presentation
|
|
What is the yield to maturity for the bond
: Consider a 25 year coupon bond with a face value of $1,000 that pays $84 annual coupons(beginning one year from today). Suppose that you bought the bond at issue for $922.18. Answer the following questions.
|
|
Discusses the pros and cons of very simple plans
: Write a report that discusses the pros and cons of very simple plans versus detailed plans, although the standards mandate very specific requirements for the plans that add a level of complexity.Include a summary paragraph/abstract at the beginnin..
|
|
How will project communications and interactions work
: How will project communications and interactions work between the project manager, the stakeholders and the project team? What are some of the issues you, as the project manager will need to be concerned about in forming the project team
|
|
To whom are the women taking combined therapy and estrogen
: To whom are the women taking combined therapy and estrogen alone being compared when the increased risks of 8% and 1% are computed?
|
|
Determine the scope of the district production warehouse
: Review the project case. Determine the scope of the District 4 Production Warehouse Move project from the information provided in the case. Using the Project Scope Checklist, prepare a scope document for review and approval by the project sponsor ..
|