What was your holding period return on the bond

Assignment Help Financial Management

Reference no: EM131980574

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. What was your holding period return (HPR) on the bond over the past two years, if the current YTM is 7%, the remaining maturity on the bond is 13 years and you were able to re-invest coupons in the past two years at 6%? (Provide your answer in percentage without the % sign)

Reference no: EM131980574

Questions Cloud

Anticipating linda ambitions : Anticipating Linda’s ambitions, your parents started investing $5,400 per year five years ago and will continue to do so for five more years.

Calculate the lowest bid price you can submit : calculate the lowest bid price you can submit (and not suffer from the winner’s curse).

Components or variables of time value of money related : How are the various components or variables of time value of money related? When one goes up what happens to another?

What is the current share price : If the required return on this stock is 12.5 percent, what is the current share price?

What was your holding period return on the bond : What was your holding period return (HPR) on the bond over the past two years, if the current YTM is 7%,

Weekly standard deviation of the stock price calculated : Bear Stearns stock price closed at $98, $103,$58,$29,$4 over five consecutive weeks. weekly standard deviation of the stock price calculated from this sample is

Distributions to shareholders : From the e-Activity, contrast the differences between a stock dividend and a stock split. Imagine that you are a stockholder in a company.

The interest rate risk associated with using?short-term debt : Nevertheless, the managers are not comfortable with the interest rate risk associated with using?short-term debt.

What will be the published exchange rate : What will be the published exchange rate for United States of America Dollar in Germany be one year from now, ceteris paribus.

User Account

All Pages