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
Finger [1]
3 years ago
15

A 30-year Treasury bond as a face value of $1,000, price of $1,200with a $50 coupon payment. Assume the price of this bond decre

asesto $1,100 over the next year. The one-year holding period return is equal to:
A) -9.17%
B) -8.33%
C) -4.17%
D) -3.79%
Business
2 answers:
RSB [31]3 years ago
4 0

Answer:

C) -4.17%

Explanation:

The return received on the asset in the period in which it is held is called holding period return. It included the interest / dividend received and change in the initial price and current price.

According to given data

Initial Price of Bond = $1,200

Current Value of the bond = $$1,100

Yearly Coupon Payment =  $50

Formula for Holding Period Return

HPR = [ Income + [ ( Expected value - Initial Value ) ] / initial value

HPR = [ Coupon Payment + [ ( Current Value - Initial Value ) ] / initial value

HPR = [ $50 +  ( $1,100 - $1,200 ) ] / $1,200

HPR = [ $50 - $100 ] / $1,200

HPR = -$50 / $1,200

HPR = -0.0417 = -4.17%

mr Goodwill [35]3 years ago
3 0

Answer:

The one-year holding period return is equal to -4.17%, so the right answer is C.

Explanation:

In order to calculate the the one-year holding return we would have to use the fomula for  Holding Period Return (HPR), which is the following:

HPR = Current Yield + Capital Change

Current Yield = Yearly Coupon Payment / Price Paid = 50/1200

Capital Change = (New Value-Old Value)/Original Value = (1100 - 1200)/1200 = -100/1200

HPR = (50-100)/1200 = -0.4166 = -0.417%

You might be interested in
On February 1, 2020, Bonita Industries purchased a parcel of land as a factory site for $328000. An old building on the property
Volgvan
I think is b I hope this helps
3 0
3 years ago
Which goal incorporates most of the criteria required for a SMART goal?
stellarik [79]

Answer:

E. Zeenat plans to become a kindergarten teacher, she has a part-time job to help finance her education and plans to obtain her graduate degree in education in three years.

Explanation:

SMART stands for SPECIFIC, MEASURABLE, ATTAINABLE, REALISTIC, TIME-HORIZON.

if look at the above answer, it has all the qualities of a SMART goal.

8 0
3 years ago
Read 2 more answers
The following information is available for Fuller Manufacturing Company for the month ending October 31:_______.
denis23 [38]

Answer:

$6,625,000

Explanation:

Direct material $1,323,600

Direct labor. $1,680,000

Total factory overhead. $3,544,200

Add: Opening work in process inventory $455,300

Less: Closing work in process inventory ($378,100)

Costs of goods manufactured $6,625,000

8 0
2 years ago
Based on the following information, prepare the bank reconciliation for Cougar Corp. as of December 31. A. On December 31, Couga
True [87]

Answer and Explanation:

The Preparation of bank reconciliation for Cougar Corp. as of December 31 is shown below:-

                                         <u>Cougar Corp.</u>

                                    <u>Bank reconciliation</u>

                          <u>For the year ended December 31</u>

<u>Particulars                                                Amount</u>

Bank balance Dec 31                            $24,575

Add: Deposit in transit                            $2,500

Less:

Outstanding checks #302          ($180)

Outstanding checks #303          ($95)

Outstanding checks #304          ($25)     ($300)

Bank balance adjusted                             $26,775

Cash balance on 31 Dec                             $26,504

Add: EFT from customer             $1,700

Add: Interest income                   $21            $1,721

Less: Posting error

($5,400 - $4,500)                         $900

Less: NSF check                            $500     $1,400

Book balance adjusted                               $26,775

Hence, the bank balance and the book balance are matched

8 0
2 years ago
In 2020, Simon, age 12, has interest income of $7,980 from funds he inherited from his grandmother and no earned income. He has
Digiron [165]
A—he has no unearned income

B—$82,250

C—I think $7,980
Because I done see his total tax
5 0
2 years ago
Other questions:
  • O.B. shipping point means
    11·1 answer
  • You chose to work beyond the age of 67. Your benefit increases 8% for every year you wait past the age of 67 but there is no inc
    14·1 answer
  • A firm has a debt-to-equity ratio of 1.0. If it had no debt, its cost of equity would be 12 percent. Its cost of debt is 9 perce
    11·1 answer
  • Metlock Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at
    11·1 answer
  • Choose the best answer. labor rate = $12 per hour hours worked = 36 overhead rate = 125% retail price of good furnished = $185 s
    15·2 answers
  • Banks make a profit by __________.
    14·2 answers
  • The ____ server is usually a high-powered workstation that maintains a large file system of data sets, user profiles, and access
    11·1 answer
  • On January 1, 2021, Gundy Enterprises purchases an office building for $151,000, paying $41,000 down and borrowing the remaining
    10·1 answer
  • Why is saving, spending and investing important? long summary
    8·1 answer
  • True or false: Firms should obey all the laws, including but not limited to labor, consumer protection, and the environment. Tru
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!