What is the one period rate of return on the bond

Assignment Help Microeconomics
Reference no: EM13690191

Suppose that you are holding a 5% coupon bond maturing in a year with face value of $1000. The current yield to maturity is 8%. If the interest rate on one year bonds rises from 8% to 10% over the course of the year, what is the one period rate of return on the bond?

 

Reference no: EM13690191

Questions Cloud

Some labor standarts are basic rights : The international labor organization (ILO) proposes that some labor standarts are basic rights. Which of the following is NOT deemed to be part of the basic rights ? According to Paul Krugman, Ricardo Ho theories, and the consequent free trade polici..
According to the solow growth theory : According to the Solow growth theory that we have studied, how would each of the following events affect per capita consumption in the long-run. Illustrate graphically and explain.
Face-value securities has the highest yield to maturity : Which of the following $1,000 face-value securities has the highest yield to maturity? Which of the following $1,000 face-value securities has the lowest yield to maturity?
What is the one period rate of return on the bond : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

Reviews

Write a Review

Microeconomics Questions & Answers

  Describe the profit-maximizing quantity

A firm that sells e-books – books in digital form downloadable from the Internet – sells all e-books relating to do-it-yourself topics home plumbing, gardening, and so on at the same price.

  Write a four to five 4-5 page paper in which you1 explain

write a four to five 4-5 page paper in which you1. explain why government regulation is needed citing the major reasons

  When will company revenue increase

Management attributes the increase in revenues to a 137 percent increase in shipments, despite a 17 percent drop in the average blended selling price of its line of phones. Given this information, is it surprising that the company's revenue increa..

  In which category or categories of national expenditures

a government report traces the economys stagnation in the last fifteen months to massive declines in spending on

  How much revenue will it receive

What price should do you charge if it wants to maximize its revenue from this concert? And, how much revenue will it receive?

  Describe how circular flow diagram relates to current

explain how the circular flow diagram relates to the current economic situation. using the circular flow diagram

  International policy coordination is plagued

Analyze the following statement: "International policy coordination is plagued by differing national economic objectives, institutions, political climates, and phases in the business cycle."

  Assume the economy is at short-run equilibrium and is in a

assume the economy is at short-run equilibrium and is in a slump. ceteris paribus what would you expect to happen to

  Which set of years most clearly demonstrates the

a countrys annual growth rates over a 10-year period are shown in the following table.year growth rate 1 5 2 3 3 4 4 -3

  Proposal aenvisages generation of electricity from water -

proposal aenvisages generation of electricity from water - a hydro-electric project. the useful life of this project is

  Explain economic growth

Within rich economies, there is strong evidence of convergence ________.for regions within a country.with developing economies. leading to military conflict.

  Examine major short-run and long-run production and cost

analyze the major short-run and long-run production and cost functions for the low-calorie microwaveable food 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