Re-calculate the rate of return

Assignment Help Financial Management

Reference no: EM131442423

If an investment of $5,000 resulted in income of $1,000 per year for 10 years, then what was the Rate of Return (ROR), i%, on the investment? (b) Re-calculate the Rate of Return (ROR), i%, using the Excel RATE function and record your cell entry and end result.

Reference no: EM131442423

Questions Cloud

Portfolio with one-week standard deviation : You have $10m portfolio with a one-week standard deviation of 1%. You will add $10m of an asset to the portfolio. The one-week standard deviation of the return of the new asset is 1%. Compute the 95% $VaR of the original $10m, the 95% $VaR of the new..

What is the default risk premium on the corporate bond : A Treasury bond that matures in 10 years has a yield of 3%. A 10-year corporate bond has a yield of 8%. Assume that the liquidity premium on the corporate bond is 0.7%. What is the default risk premium on the corporate bond?

Draw a savings-investment diagram-increased budget deficit : Assume that Ricardian equivalence holds. What happens to national savings when the government increases the deficit? What happens to private savings?

What is your new estimate of the company stock price : Fincher Manufacturing has projected sales of $147.4 million next year. Costs are expected to be $82.2 million and net investment is expected to be $16.2 million. Each of these values is expected to grow at 15 percent the following year, with the grow..

Re-calculate the rate of return : If an investment of $5,000 resulted in income of $1,000 per year for 10 years, then what was the Rate of Return (ROR), i%, on the investment? (b) Re-calculate the Rate of Return (ROR), i%, using the Excel RATE function and record your cell entry an..

Markup on material and you wish to recoup all your costs : You own a car body/paint repair shop. You have been asked to submit a bid to repair ten (10) identical cars from a dealer lot that were all similarly damaged by a hail storm. Each car requires a new hood, roof, decklid, and total repainting. If there..

Define gdp : The real value of the debt (in 1995 dollars) in 1995 was $3.6 trillion and in 1980 was $1.3 trillion. Assume that 50 percent of this buildup in the debt would have gone into investment, so that the capital stock would have been $1.15 trillion larg..

Accumulate the required amount to buy house of your dreams : You plan to buy the house of your dreams in 13 years. You have estimated that the price of the house will be $77,578 at that time. You are able to make equal deposits every month at the end of the month into a savings account at an annual rate of 6.6..

What is the yield to maturity at a current market price : The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8%. What is the yield to maturity at a current market price of $790? You would buy th..

User Account

All Pages