Against dollar during period-what is the total dollar return

Assignment Help Financial Management
Reference no: EM131554739

Bond A has a par value of 1,000 in local currency, at coupon rate of 5% with 5 years to maturity and sold at 990 in local currency. One year later, the discount rate was 6%, and Bond is currently selling at 965.35 in local currency. If the local currency appreciates by 3% against the dollar during the period, what is the total dollar return?

Reference no: EM131554739

Questions Cloud

How much in the risk free asset : you create a portfolio equally as risky as the market, how much money should you invest in stock B? How much in the Risk Free Asset?
How does volatility impact the size of the bid-ask spread : How does the size of the bid-ask spread vary according to the time of day? Why? How does volatility impact the size of the bid-ask spread?
Risk free rate and expected market return : The risk free rate is 6%, and the expected market return is 15%.
What are black-scholes prices of the call and the put : What are the Black-Scholes prices of the call and the put? What are the option deltas?
Against dollar during period-what is the total dollar return : If the local currency appreciates by 3% against the dollar during the period, what is the total dollar return?
Reduce pretax operating costs-should we accept the project : Consider a $10,000 machine that will reduce pretax operating costs by $3,000 per year over the next five years. Should we accept the project?
What was your total dollar return : If you bought the stock at $98.50 and sold it at $120, what was your total dollar return, in percent on Toyota stock for the year?
Compute the value of a Call Option on AAPL stock : Using Black-Scholes option pricing formula, compute the value of a Call Option on AAPL stock with a June 16, 2017 expiration and a strike price of $150.
How the put value utilizing the replicating portfolio method : how the put value utilizing the replicating portfolio method, and explaining your positions in the replicating portfolio.

Reviews

Write a Review

Financial Management Questions & Answers

  Using spot and forward exchange rates

Using spot and forward exchange rates: The spot exchange rate for the Canadian dollar (CAD) is 1.14 CAD and the six-month forward rate is 1.17 CAD.

  Calculate the costs of equity-debt and preferred stock

Axel Rose Inc. (ARI) has a 15 year, 12% semi-annual coupon bond that is currently selling for $1,153.72. ARI’s current stock price is $25.00 and the company expects its next dividend to be $2.50 with a constant growth rate of 5%. Calculate the costs ..

  The stockholders without creating any additional risk

An evaluation by the company's financial staff concludes that the company is holding too much cash. This situation is reported to the stockholders. How do you think the stockholders would react to this information? What options do you have to deal wi..

  What is the full selling price of a globe with mark-up

The Falling Snow Company is considering production of a lighted world globe that the company would price at a mark-up of 0.30 above full cost. Management estimates that the variable cost of the globe will be $68 per unit and fixed costs per year will..

  How much will you pay in principal during the first month

how much will you pay in principal, during the first month, second month, and first year?

  Current interest rate for discounting perpetuity

Suppose that you have a liability of $1000 per year in perpetuity-current interest rate for discounting perpetuity is 8%.

  What is the total expected return of this investment

An investor with a 3-year investment horizon wants to buy a 20-year 8% coupon bond for $82.84, with YTM as 10%. He expects to be able to reinvest the coupon interests at 6%, and 3 years later he can sell the bond to offer a YTM of 7%. What is the tot..

  Compute their tentative minimum tax

Compute their tentative minimum tax for 2016. Is State Income Tax included in itemized deduction?

  Initial fixed asset investment-variable costs-quantity sold

Consider a three-year project with the following information: initial fixed asset investment = $860,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $33.65; variable costs = $22.35; fixed costs = $208,000; ..

  Calculate the projects NPV-IRR-MIRR and Payback

Madison manufacturing is considering a new machine that costs $350,000 and would reduce pre tax manufacturing costs by $110,000 annually. Madison would use the 3 year MACRS method to depreciate the machine, and management thinks the machine would hav..

  What is the companys target debt-equity ratio

Fama’s Llamas has a weighted average cost of capital of 10.4 percent. The company’s cost of equity is 13 percent, and its pretax cost of debt is 8.4 percent. The tax rate is 40 percent. What is the company’s target debt−equity ratio?

  Use as initial investment in fixed assets when evaluating

Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land 6 years ago for $4 million in anticipation of using it as a warehouse and distribution site, but the company ..

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