What is your return over the six months

Assignment Help Finance Basics
Reference no: EM131951451

Question: You buy a 20-year bond with a coupon rate of 8.7% that has a yield to maturity of 9.7%. (Assume a face value of $1,000 and semiannual coupon payments.) Six months later, the yield to maturity is 10.7%. What is your return over the 6 months? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.)

Reference no: EM131951451

Questions Cloud

Explain what is the nal : You can buy a steam press for your business at $5,000 or lease one for 6 months at $1,200 per month, with the first payment due today.
Calculate the straddle profit or loss : You buy a straddle on SD whose exercise price on the call and the put is $20. The premium on the call option is $0.15, and the premium on the put option.
What will the price of the bond be in given time period : You buy a 30 year zero coupon bond which will pay you $1000 in 30 years at an annual yield of i = 4% compounded once per year.
How much will the busness recieve from the bank : A busness accepted a note of 9000 plus 1000 service fee to be paid in 12 months. not along after the busness arranged for alocal bank tk purchase.
What is your return over the six months : You buy a 20-year bond with a coupon rate of 8.7% that has a yield to maturity of 9.7%. (Assume a face value of $1,000 and semiannual coupon payments.)
What is the risk-free interest rate : You buy a share of stock, write a 1-year call option with X = $45, and buy a 1-year put option with X = $45. Your net outlay to establish the entire portfolio.
Explain why buyer limited use a swap agreement : Buyer Limited design to sign an interest rate swap agreement to pay a floating rate and receive a fixed rate. The swap contract can help Buyer Limited.
Calculate the selling price that would represent a markup : A buyer for BestBuy is negotiating with a manufacturer to purchase an order of edge-lit 58 inch 3D LED televisions. She negotiates a price of $1,210.
What was your annual holding period ror : You buy a bond with a par value of $1000 and a coupon rate of 8% with 19 coupons remaining. You hold the bond and receive 8 coupons.

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