Determine what is the expected rate of return

Assignment Help Accounting Basics
Reference no: EM131799497

Question - A company's bonds are selling for $1,045. These 15 year bonds pay 7% annually on a $1,000 par value. If the bond is purchased at market price, what is the expected rate of return?

Reference no: EM131799497

Questions Cloud

What would be the unit of analysis : A foreman thinks that the low efficiency of the machine tool operators is directly linked to the high level of fumes emitted in the workshop.
What are the most significant leadership trends : What are the most significant leadership trends that require a change in leadership approaches by 2020? What leadership changes will be most important?
Analyze your organization in its present form : Both leadership and organizational strategy in the next decade will see major trends affecting the way organizations conduct business.
What is the value if the interest rate were paid annually : If your required rate of return is 10%, what is the value of the bond? What is the value if the interest rate were paid annually
Determine what is the expected rate of return : These 15 year bonds pay 7% annually on a $1,000 par value. If the bond is purchased at market price, what is the expected rate of return
What potential ethics are involved in the given situation : You need to hire contractors for the electrical work. You also know that getting the permits is going to be very difficult and my delay your project.
How the reader interprets the question : This survey technique has a flaw and, I believe, that it will not give a correct assessment because it is based on how the reader interprets the question.
What will be the amount of each payment : You purchase a boat fpr $35,000 and pay $5,000 down. What will be the amount of each payment
How the morale of the organization is and nothing happens : I was in for 24 years and I have taken so many commander surveys to see how the morale of the organization is and nothing happens.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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