What would be the total return of the bond in dollars

Assignment Help Financial Management

Reference no: EM131043832

A 6.65 percent coupon bond with 23 years left to maturity is priced to offer a 5.9 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.5 percent.

What would be the total return of the bond in dollars?

What would be the total return of the bond in percent?

Reference no: EM131043832

Questions Cloud

What is the present worth of the savings : what is the present worth of the savings (in $/acre-ft) to the utility between the old and the new contracts? Let the interest rate equal 6% per year.

Questions on the exam qualify for a permit : A state motor vehicle department requires learners to pass a written test on the motor vehicle law of the state. The exam consists of ten true-false questions, of which eight must be answered correctly to qualify for a permit. In how many differen..

What is after-tax cost of capital for this debt financing : Great Seneca Inc. sells $100 million worth of 24-year to maturity 13.75% annual coupon bonds. The net proceeds (proceeds after flotation costs) are $974 for each $1,000 bond. The firm's marginal tax rate is 35%. What is the after-tax cost of capital ..

Quotes similar to this one are common with home mortgages : You are looking at a one-year loan of $21,000. The interest rate is quoted as 11 percent plus two points. A point on a loan is simply 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. What..

What would be the total return of the bond in dollars : A 6.65 percent coupon bond with 23 years left to maturity is priced to offer a 5.9 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.5 percent. What would be the total return of the bond in dollars? What would b..

What is the projects initial investment outlay : Leaf It To Us Corporation is considering an expansion project. The necessary equipment could be purchased for $22,287,200 and shipping and installation costs are another $14,220. The project will also require an initial $156,699 investment in net wor..

What is change in price the bond will experience in dollars : A 6.05 percent coupon bond with fifteen years left to maturity is priced to offer a 7.1 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.0 percent. What is the change in price the bond will experience in dollar..

What will be amount to be paid each month during six years : To finance his development, Innovplastic ltd is negotiating a loan from the bank. The amount needed is 3000 000 €. The bank proposes an interest rate of 6% (insurance included). The loan will be reimbursed by fix payment each month. You are consideri..

Interest payments are paid semi- annually and par value : A 7.25% coupon bond with 10 years left to maturity is offered for sale at $1037.20. What yield to maturity is the bond offering? (hint: interest payments are paid semi- annually and par value is $1000) please draw time line and use financial calculat..

User Account

All Pages