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Liula [17]
3 years ago
7

A newly issued bond pays its coupons once annually. Its coupon rate is 5.2%, its maturity is 20 years, and its yield to maturity

is 7%. a. Find the holding-period return for a 1-year investment period if the bond is selling at a yield to maturity of 6% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
Irina18 [472]3 years ago
4 0

Answer:

holding period return is 14.20%

Explanation:

In calculating the holding period return, the formula to use is given below

HPR=P1-P0+interest/P0

P1  is the price of the bond in year 1

P0 is the price of the bond in year 0

Interest is the coupon received in year 1

Price is the present value of the bond calculated using the pv formula in excel

=pv(rate,nper,pmt,fv)

rate is the yield to maturity

pmt is the interest payment which is 5.2%*$1000=$52

nper is the number of years to maturity

fv is $1000

for P0 =pv(7%,10,52,1000)

P0=$873.58  

For P1

=pv(6%,9,52,1000)

P1=$945.59  

HPR=($945.59 -$873.58+$52)/$873.58  

HPR=14.20%

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Answer: energy

 

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In the given case, Jared initiated the project but lacked vitality off continuing and completing it due to lack of focus and happening of errors. Thus, we can conclude that he lacked energy.

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DEF Ltd is a global leader in the manufacture, integration and support of networking and telecommunications systems. The company
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DEF Ltd's main problem is the inaccuracy regarding the recognition of revenue and other inconsistencies in financial reporting. This problem includes:

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Moreover, these problems are intended to be solved through a review process and training seminars. These two ideas are useful for the problem; however, the company might face some challenges and problems such as:

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5 0
2 years ago
Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers
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Answer:

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