What was the rate of return for the bond over the past year

Assignment Help Financial Management

Reference no: EM131491332

Two years ago, the price of a bond was 1,056.58 dollars, and one year ago, the price of the bond was 1,099.16 dollars. Over the past year, the bond paid a total of 85.96 dollars in coupon payments, which were just paid. If the bond is currently priced at 1,088.48 dollars then what was the rate of return for the bond over the past year (from 1 year ago to today)? The par value of the bond is 1,000 dollars. Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Reference no: EM131491332

Questions Cloud

Parramores cash conversion cycle : What is Parramore's cash conversion cycle (CCC)?

What was the current yield of the bonds six months ago : Bonds issued by Fairfax Paint have a par value of 1000 dollars, what was the current yield of the bonds 6 months ago?

Price of the bonds increase between now and maturity : Lance Whittingham IV specializes in buying deep discount bonds. By what percent will the price of the bonds increase between now and maturity?

Company sales through exports to three foreign subsidiaries : Albert, CEO of XYZ, Inc., desires to expand the company’s sales through exports to three (3) foreign subsidiaries.

What was the rate of return for the bond over the past year : If the bond is currently priced at 1,088.48 dollars then what was the rate of return for the bond over the past year (from 1 year ago to today)?

Started a fitness magazine called the dancing elephant : In 2001, Ms. Kelle, the head of aerobic equipment sales, started a fitness magazine called the Dancing Elephant.

Bonds issued by oxygen optimization : Bonds issued by Oxygen Optimization were priced at 884.17 dollars 6 months ago.

Best guess for the rate of return on the stock : what is your best guess for the rate of return on the stock?

What are the requirements to make an S election : What are the requirements to make an S election? How are S corporations superior to C corporations tax-wise for owning investment real estate?

User Account

All Pages