What rate of return would you receive

Assignment Help Finance Basics

Reference no: EM132063593

Question: You purchased a bond with 9 years maturity, 6% coupon rate, annual coupons, and $100 face value trading at a yield to maturity of 9.4%. After one year of holding the bond and right after receiving the first coupon, you decide to sell the bond. If the yield to maturity when you sell the bond is 2.8%, what rate of return would you receive on this investment over the one year?

Reference no: EM132063593

Questions Cloud

Determine that each booth utilizes a local exhaust system : Environmental Safety Management - Determine if the current hazardous materials storage area is adequate and meets the requirements of Acme's insurance carrier

What is filer aftertax cost of debt : Filer Manufacturing has 5700000 shares of common stock outstanding. The tax rate is 0.36. What is Filer's aftertax cost of debt?

What is sara taxable income : For 2015, Sara, a single taxpayer, had only two sources of income: a $60,000 salary and $9,600 received in rental revenues. What is Sara's taxable income

Identification of important terms : Include in your mechanism the correct use of the arrow pushing formalism, focusing on the steps we used for this kind of reaction, and the identification

What rate of return would you receive : You purchased a bond with 9 years maturity, 6% coupon rate, annual coupons, and $100 face value trading at a yield to maturity of 9.4%.

What molecular diagnostic approach would you use : What molecular diagnostic approach would you use? Once you have identified the cause, what treatment will you develop

What is the balance of your loan : You purchased a car using some cash and borrowing $15,000 (the present value) for 50 monthly at 12% per year. Calculate the monthly payment (annuity).

What molecular events are happening inside the bacterial : What molecular events are happening inside the bacterial cell during the period from when the D-glucose is consumed until the culture starts growing again?

About accruals and cash flow : Provide one Truth and Myth about Accruals and Cash Flow. Explain whether you agree or disagree and why?

User Account

All Pages