Calculate the time-weighted rate of interest

Assignment Help Financial Management
Reference no: EM13725489

On January 1st, an investment is worth $100. On April 19th, the value is $95 and $2X is deposited right afterwards. On October 30th, the value is $105 and $X is deposited right afterwards. On January 1st of the following year, the investment is worth $115. The dollar-weighted rate of interest for this one-year period is 0%. Calculate the time-weighted rate of interest.

Reference no: EM13725489

Questions Cloud

Bond issue outstanding with an annual coupon : Potter Industries has a bond issue outstanding with an annual coupon of 6% and a 10-year maturity. The par value of the bond is $1,000. If the going annual interest rate is 9%, what is the value of the bond?
What is the minimum cash flow : 10. What is the minimum cash flow that could be received at the end of year three to make the following project "acceptable?"  Initial cost = $100,000; cash flows at end of years one and two = $35,000; opportunity cost of capital = 10%.
A bond pays semiannual coupon payments : Question 1.1. A bond pays semiannual coupon payments of $30 each. It matures in 20 years and is selling for $1,200. What is the firm's cost of debt if the bond's par value is $1,000? (Don't forget this is a semiannual coupon.) (Points : 1)
Bond valuation-what is the bonds current market price : Callaghan Motors' bonds have 5 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 11.5%, and the yield to maturity is 11%. What is the bond's current market price? Round your answer to th..
Calculate the time-weighted rate of interest : On January 1st, an investment is worth $100. On April 19th, the value is $95 and $2X is deposited right afterwards. On October 30th, the value is $105 and $X is deposited right afterwards. On January 1st of the following year, the investment is worth..
Find the industry ratios for the company using the dun : Find the industry ratios for the company using the Dun & Bradstreet® Key Business Ratios link in the Week 2 Electronic Reserve Readings. If your company's SIC code does not appear in the dropdown menu, choose another company.
What is the unlevered return on equity of the new project : Company A has a debt of $25,000,000 while its equity is $115,000,000. The beta of A's levered equity is 0.95 and the company keeps a constant debt-to- equity ratio. Company A's cost of debt is 4.35% and it bears no systematic risk. The expected retur..
Calculate the expected value of the high and low : Calculate the expected value of the high and low risk project of MarCher's stockholders and bondholders, assuming the firm does borrow money to partially finance the purchase of the project. Predict which project the bond holders prefer. Justi..
Consider the sequence of cash flows : Consider the sequence of cash flows R0 = ?50, 000, R1 = 20, 000, R2 = 10, 000, R3 = Y . Find the minimum value of Y which guarantees that there is a unique positive yield rate

Reviews

Write a Review

Financial Management Questions & Answers

  Currency futures to hedge the exchange rate risk

Explain how forward contracts and currency futures could be used by Mega Company and construct appropriate hedges with forward contracts and currency

  Prepare a report on the different considerations that an

prepare a report on the different considerations that an mnc should keep in mind when obtaining capital from a foreign

  Find the outstanding balance at the end of the first year

A loan of 100,000 has payments at the end of each month for 12 years. For the first 6 years the payments are Z each month, and for the final 6 years the payments are 2Z each month. Interest is at a nominal annual rate of 12% compounded monthly. Find ..

  Assume you invest 3500 today compounded semiannually with

1 suppose you invest 3500 today compounded semiannually with an annual interest rate of 8.50. what amount of interest

  Calculate the expected return of stock a

Calculate the expected Return of Stock A, expected Return of Stock B, standard Deviation of Stock A and standard Deviation of Stock B

  Develop and describe a strategic measurement

develop and describe a strategic measurement ldquoscorecardrdquo that might be incorporated with the financial measures

  Absorb the risk by plowing back the capital surplus

If a firm that CANNOT issue new equity grows at a rate higher than SGR, which of the following MUST be true? They can absorb the risk by plowing back the Capital Surplus. Trick question: a firm cannot grow at a rate higher than SGR

  What is the future value of his investment cash flows

Chuck Brown will receive from his investment cash flows of $3,175, $3,460, and $3,850 at the end of years 1, 2 and 3 respectively. If he can earn 7.5 percent on any investment that he makes, what is the future value of his investment cash flows at th..

  What is the present value of this security

You own a security that provides an annual dividend of $135 forever. The security’s annual return is 5%. What is the present value of this security? Round your answer to the nearest cent.

  What is the company''s eva and what does the eva represent

Smith's Shoe Shop had $4,000,000 in operating income last year, after-tax cost of capital of 7%, and a tax rate of 35%. The company has $14,000,000 in stockholder's equity, $17,000,000 in long-term bonds, and $1,500,000 in preferred stock.

  Question 1you are considering investing in facial

question 1you are considering investing in facial laboratories. suppose facial is currently undergoing expansion and is

  Benefits and costs of planning a financially troubled

What are the benefits and costs of planning a financially troubled company into a Chapter 11 Bankruptcy proceeding? Is this a legitimate and ethical vehicle for management to use for the benefit of the company’s stakeholders?

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