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Igoryamba
3 years ago
12

Suppose the bond has 10 year to maturity, and the bond has a 5% yield (that is, annual return). what price does this bond sell f

or? what if the yield of the bond is 6%?

Business
1 answer:
Over [174]3 years ago
3 0
Amoreandrusamoreandrus

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Corporate Fund started the year with a net asset value (NAV) of $12.50. By year-end, its NAV equaled $12.10. The fund paid year-
Setler79 [48]

Answer:

The rate of return to an investor in the fund=0.088*100=8.80%

Explanation:

Given Data:

NVA at the start of the year=(NAV)_o=$12.50

NVA at the end of the year=(NAV)_f$12.10

Distributions of income and capital gains =$1.50

Required:

The rate of return to an investor in the fund=?

Solution:

Rate of return=\frac{(NAV)_f+\ Distributions}{(NAV)_o}-1

Rate\ of\ return=\frac{12.10+1.50}{12.50}-1 \\Rate\ of\ return=0.088

The rate of return to an investor in the fund=0.088*100=8.80%

5 0
3 years ago
Use the following information to perform the calculations below (using the indirect method).
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Answer:

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prepaid insurance -$8,400

net cash flow from operating activities $695,800

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Long term assets exchanged for common stocks $113,000

net cash flow from investing activities -$439,500

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