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ValentinkaMS [17]
3 years ago
15

"suppose that you invest $1,000.00 in stock, which is called your financial asset. one year later, your investment yields $1245.

00. what is the rate of return of your investment?"
Business
1 answer:
Radda [10]3 years ago
6 0
Hey there, Jessebear644!

Your return is $245 since you initially invested $1000 and got those $1000 back plus $245
Also, the rate shall be equal to +124.5% per year or 1.245 in decimal.
"How did you find that percentage?"
You just divide the new price, or new value, by the old price, or old value.
So, $1245 / $1000 = 1.245
We multiply that decimal by 100 to find the percentage.
I hope this helps.

Thank you for using Brainly.
See you soon!
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Expiration Yield

The calculation of the yield at maturity amortizes the value of the premium or the discount (bonds over and under the pair) in the price of the bond throughout the life of the bond. For example, if the bond that pays 6 percent of the aforementioned coupon rate expires in 10 years, and is priced at US $ 9,600, the yield at maturity is 6,558 percent. If two bonds, one on the pair and one under the pair, have the same yield at maturity, any of them represents the same level of return for the investor. The yield at maturity is what the investor will receive if the bond is purchased at the current market price and held until maturity.

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