Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a bond has a $1,000 par value, 12 years to maturit

A bond has a $1,000 par value, 12 years to maturity, and pays a coupon...

70.2K

Verified Solution

Question

Finance

image
A bond has a $1,000 par value, 12 years to maturity, and pays a coupon of 5.25% per year, semiannually. You expect the bond's yield to maturity to decrease to 5.0% per year in three years. If you buy the bond today for $984.75 and sell it in three years, what is the annual return on your investment? OA) 6.26% B) 5.42% OC) 6.36% D) 6.74% E) 6.42%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would...

Finance
Q

Discuss the concept of Replacement Cost Coverage for Homeowners Policies, the danger that many homeowners face with...

Finance
Q

8 Solve for the indicated angle D E 68 Z 136

Geometry
Q

What type of triangle has side lengths 9, 10, and ?130?A. obtuseB. rightC. not a...

Geometry
Q

8 Are the planes 3x y 2z 4 0 and x 2y 2z 3 0...

Algebra
Q

Chapter 5 MULTIPLE CHOICE. Choose the one alternative that...

Accounting
Q

Common stock, $11 par value, 49,000 shares outstanding Preferred stock, 8 percent, $9 par value,...

Accounting
Q

Can you find the answers to the budgeted multiple-step Income Statement, please? Thank you! The...

Accounting
Q

Shopify sold 7.7m shares of no par common stock during its IPO for $28/share. The...

Accounting
Q

You have been approached by your client, Banana Industries Pty Ltd, to assist them in...

Accounting
Q

Alba lid is an electronic and electrical consumer products manufacturing company headquartered in Malaysia. The...

Accounting
Q

Hardy Lumber has a capital structure that includes bonds, preferred stock, and common stock. Which...

Finance