1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Katen [24]
2 years ago
14

3. A 9.3% annual coupon bond with a 10-year maturity and a $1,000 par value has a yield to maturity of 8%. Assuming that the yie

ld curve is flat and doesn’t shift, calculate the holding period return you would achieve from buying the bond, holding it for one year only.
Business
1 answer:
aliina [53]2 years ago
3 0

Holding period return is 8.000%

Price at the time of purchase=

1000*9.3% 8(1/1.08^10)+1000/1.08^10=1087.231058

Price at the time of sale=

1000*9.3%/8%*(1-1/1.08^9)+1000/1.08^9=1081.209543

Holding period return=

(1081.209543+1000*9.3%)/1087.231058-1=8.0000%

Coupon bonds, also known as bearer bonds or bond coupons, are debt securities with coupons attached that represent semi-annual interest payments. For coupon bonds, there is no record of the purchaser and issuer. The purchaser's name is not even printed on the certificate.

A coupon bond is a debt instrument with a removable piece of paper that can be peeled off the bond itself and taken to a bank or broker to pay interest. These removable pieces of paper are called coupons and represent interest payments to creditors.

Learn more about   coupon bonds here

brainly.com/question/26376004

#SPJ1

You might be interested in
How much would you have made or lost on an investment of $1 000
Ad libitum [116K]

Answer:

depends on how much you already have...

Explanation:

5 0
3 years ago
When a firm declares bankruptcy, Group of answer choices the claims of preferred shareholders are honored before those of the co
Sedaia [141]

Answer:

the maximum that shareholders can lose is their original investment in the firm's stock AND the claims of preferred shareholders are honored before those of the common shareholders.

Explanation:

          Bankruptcy may be defined as the legal proceedings that involves a person or a business where the person or the business firm is not able to repay the debts that are outstanding. When a firm or a person files a bankruptcy, there is an automatic stay put by the court that blocks the debts.

         In case of bankruptcy the different shareholders of the firm losses a maximum of their original investment that they have done in the firm while purchasing the stocks. And also the claims of the preferred shareholders are being honored first than those of common shareholders.

6 0
3 years ago
A young college student was making a purchase at her local department store. The clerk suggested that she would get an additiona
zloy xaker [14]

Answer: a. Reports indicate that students are particularly vulnerable to these tactics. If you fail to pay off the balance, you end up paying much more than the original purchase price for your items.

Explanation:

Even though financial advice is usually tailormade for the individual, a financial expert would most likely give this advice to a student because students are indeed vulnerable to such tactics.

They would be more prone to spend more in the store as a result of the credit card and this will lead to them being unable to pay off balances which will then lead to them paying much more than the original price they would have paid.

4 0
2 years ago
What is the management of information flows between and among activities in a supply chain to maximize total supply chain effect
MAXImum [283]

The management of information flows between and among activities in a supply chain to maximize total supply chain effectiveness and corporate profitability  is SCM (Supply Chain Management).

Management is the dynamic process of getting things done by others with the goal of achieving a common goal effectively and efficiently. All functions, from planning to organization, personnel allocation, management, and generalization, are essential for the smooth execution of management in an organization.

Management theory is a collection of ideas that recommend general rules for running an organization or business. They deal with how managers execute strategies to achieve company goals and how they motivate employees to do their best.

Management theory is a collection of ideas that recommend general rules for running an organization or business. They deal with how managers execute strategies to achieve company goals and how they motivate employees to do their best

Learn more about Management brainly.com/question/26106218

#SPJ4

7 0
2 years ago
If Nintendo lowers the price of its product by $10, Sony responds by lowering the price of its own product by $10. The following
yuradex [85]

Answer:fg yvhjbnkhnb vgfffff

Explanation:

4 0
3 years ago
Other questions:
  • Which of the following statements about the U.S. housing industry is accurate?
    7·1 answer
  • You have a portfolio that is invested 11 percent in Stock R, 56 percent in Stock S, and the remainder in Stock T. The beta of St
    8·2 answers
  • Trade between countries leads to A. reduced specialization. B. high unemployment in both countries. C. higher product prices. D.
    12·2 answers
  • What are the three parts of the federal reserve system
    9·1 answer
  • In Dart Co.'s Year 2 single-step income statement, as prepared by Dart's controller, the section titled "Revenues" consisted of
    5·1 answer
  • Each of the following transactions appear on the statement of cash​ flows, EXCEPT: A. depreciating longinus lived assets. B. acq
    5·1 answer
  • Elaine is a secretary for a business. One day a customer comes in to file a new contract while Elaine is seated at her boss’s de
    9·1 answer
  • In your own words, define “ study habits.”
    15·2 answers
  • The purpose of a theory, in general, is to ________________________________. Select the correct answer below: determine the leve
    6·1 answer
  • Closing entries and a post-closing trial balance are steps in the accounting cycle that occur
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!