subject
Business, 07.07.2021 19:20 dustincasper2

A government bond matures in 4 years, makes annual coupon payments of 4.0% and offers a yield of 2.0% annually compounded. a. Suppose that one year later the bond still yields 2.0%. What return has the bondholder earned over the 12-month period? (Do not round intermediate calculations. )
b. Now suppose that the bond yields 1.0% at the end of the year. What return did the bondholder earn in this case? (Do not round intermediate calculations.)

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 06:10
Information on gerken power co., is shown below. assume the company’s tax rate is 40 percent. debt: 9,400 8.4 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 100.5 percent of par; the bonds make semiannual payments. common stock: 219,000 shares outstanding, selling for $83.90 per share; beta is 1.24. preferred stock: 12,900 shares of 5.95 percent preferred stock outstanding, currently selling for $97.10 per share. market: 7.2 percent market risk premium and 5 percent risk-free rate. required: calculate the company's wacc. (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) wacc %
Answers: 2
question
Business, 22.06.2019 06:30
The larger the investment you make, the easier it will be to: get money from other sources. guarantee cash flow. buy insurance. streamline your products.
Answers: 3
question
Business, 22.06.2019 20:30
Considered alone, which of the following would increase a company's current ratio? a. an increase in net fixed assets.b. an increase in accrued liabilities.c. an increase in notes payable.d. an increase in accounts receivable.e. an increase in accounts payable.
Answers: 3
question
Business, 23.06.2019 00:10
Wang distributors has an annual demand for an airport metal detector of 1 comma 350 units. the cost of a typical detector to wang is $400. carrying cost is estimated to be 19% of the unit cost, and the ordering cost is $24 per order. if ping wang, the owner, orders in quantities of 300 or more, he can get a 10% discount on the cost of the detectors. should wang take the quantity discount? \
Answers: 1
You know the right answer?
A government bond matures in 4 years, makes annual coupon payments of 4.0% and offers a yield of 2.0...
Questions
question
English, 07.01.2021 01:40
question
Mathematics, 07.01.2021 01:40
question
English, 07.01.2021 01:40
question
Arts, 07.01.2021 01:40
question
Mathematics, 07.01.2021 01:40
Questions on the website: 13722359