What was your total return for past year

Assignment Help Financial Management

Reference no: EM131349113

You purchased a zero-coupon bond one year ago for $283.33. The market interest rate is now 9 percent.

Required:

If the bond had 15 years to maturity when you originally purchased it, what was your total return for the past year?

Reference no: EM131349113

Questions Cloud

What is the additional year three- cash flow : Post work would be best. The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price $1,080,000, and it would cost another $22,500 to install it. The machine falls into MACRS 3- year class, and ..

Why is firm debt rating important : Why is a firm’s debt rating important? A firm’s capital structure is composed of what? What can be the advantage of adding debt to a company’s capital structure when the current level of debt is low?

Calculate annual depreciation allowances for both machines : Post your work would be best. DeYoung Entertainment Enterprise is considering replacing the latex molding machine it uses to fabricate rubber chickens with a newer, more efficient model. What is the initial net cash flow if the new machine is purchas..

Replacement decision-computing after-tax cash flows : Okmulgee Hospital (a large metropolitan for-profit hospital) is considering replacing its MRI equipment with a new model manufactured by a different company. The old MRI equipment was acquired three years ago, has a remaining life of five years, and ..

What was your total return for past year : You purchased a zero-coupon bond one year ago for $283.33. The market interest rate is now 9 percent. If the bond had 15 years to maturity when you originally purchased it, what was your total return for the past year?

What is the termination cash flow : ABC, Inc. is currently evaluating an independent capital project, involving a fixed asset with a purchase price of $680,000. ABC will have to bear shipping and installation cost of $5,000. WHAT ARE THE NET OPERATING CASH FLOWS FOR YEAR 1 THRU 5 OF TH..

What is the current spot exchange rate : The 90-day forward exchange rate is .01073033 dollars per yen. If this forward rate represents a per year premium of 2.5% from the current spot rate, what is the current spot exchange rate?

What is the required rate of return for the asset : Calculate the required rate of return for an asset that has a beta of 1.66, given a risk-free rate of 3.8 % and a market return of 8.5 %. b. If investors have become more risk-averse due to recent geopolitical events, and the market return rises to 1..

Portfolio model maximizes expected return : A second version of the Markowitz portfolio model maximizes expected return subject to a constraint that the variance of the portfolio must be less than or equal to some specified amount. Consider the Hauck Financial Service data. Click on the datafi..

User Account

All Pages