What is the future value of the coupons earned

Assignment Help Finance Basics
Reference no: EM131948603

Question: You bought a bond that pays semiannual coupons at the coupon rate of 6%. The bond's par value is $1000. Three years later you sell the bond. What is the future value of the coupons earned in these three years, if you can reinvest coupons at 4% rate? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131948603

Questions Cloud

Find its yield to maturity : Carnival Corp issues a 9 percent coupon bond with 13 years maturity and $1,000 face (par) value. find its yield to maturity.
What is the value of ending inventory : Beginning Inventory at these costs on July 1 was 3100 units. From July 1 to Dec 1, 20X1, Bradley produced 12,200 units. These units had a material cost.
What was your holding period return on the bond : You bought a bond paying semi-annual coupons with face value of $1000 and the annual coupon rate of 9% two years ago for $ 1086.46.
Find company whose ticker symbol contains your initials : Find a company whose ticker symbol contains your initials. choose any company contained in the Dow Jones Industrial Average.
What is the future value of the coupons earned : You bought a bond that pays semiannual coupons at the coupon rate of 6%. The bond's par value is $1000. Three years later you sell the bond.
What was annual rate of appreciation in the value of house : You bought a house for $75,000 six years ago. The current market value of the house is $200,000. What was the annual rate of appreciation in the value.
What is the apr of your investment : You bought a stock three months ago for $43.33 per share. The stock paid no dividends. The current share price is $46.65 What is the APR of your investment?
What would be the borrower before-tax yield on equity : A borrower wants to finance an apartment costing $2 million with 75% LTV, 20 year loan at the rate of 6%. The projects' NOI expected to be $150,000.
Define option to repay the entire loan with a final payment : You borrow 1,000 at an annual effective interest rate of 4%, and agree to repay it with 3 annual installments. The amount of each payment in the last 2 years.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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