The rate of return on an investment is the investors gain or loss on the investment over a period of time.
Answer:
6.35%
Explanation:
If you purchase this bond you will need to pay $1,000 x 136.04% = $1,360.40
the coupon rate is 9.5% / 2 = 4.75% or $47.50 every six months
the bond matures in 18 years or 36 semiannual periods
yield to maturity = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = {47.5 + [(1,000 - 1,360.4)/36]} / [(1,000 + 1,360.4)/2]
YTM = 37.49 / 1,180.2 = 0.031766 x 2 (annual yield) = 0.06353 = 6.35%
Answer:A. To sell the bond for more than what you paid for the bond
Explanation:
The security market in which bonds are sold are affected by information in relation to specific bond either favorable or unfavorable information.
The price of the bond will appreciate in response to existing or anticaped positive information and will depreciate in response to negative or anticaped negative information..
The increase in market return in relation to the bond of similar nature in the above scenario shows an existing or anticipated positive development and for this the bond is expected to be sold than the purchased price.
Answer:
Explanation:
Find attached The compliance act policy for coding that talk about the various source code for diifrent organization
