Mark Crane purchased a $1,000 corporate bond five years ago for $1,060. The bond pays 4.5 percent

Question:

Mark Crane purchased a $1,000 corporate bond five years ago for $1,060. The bond pays 4.5 percent annual interest. Five years later, he sold the bond for $950. Calculate the total return for Mr. Crane's bond investment.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Personal Finance

ISBN: 978-0077861643

11th edition

Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes

See More Books

Question Posted: Sep 15, 2017 12:29 PM

See More Questions

Jean Miller purchased a $1,000 corporate bond for $910. The bond pays 5 percent annual interest. Three years later, she sold the bond for $1,010. Calculate the total return for Ms. Miller's bond...
Jean Miller purchased a $1,000 corporate bond for $860. The bond pays 4 percent annual interest. Three years later, she sold the bond for $980. Calculate the total return for Ms. Millers bond...
In 1994, you purchased a $1,000 corporate bond issued by Boeing. At the time, the interest rate for the bond was 6 percent. Today, comparable bonds are paying 4.30 percent. a. What is the approximate...
Determine the largest force P that can be exerted at the jaws of the punch without exceeding a stress of 16 ksi on section m-n of the frame.
Draw two different chair conformations of trans-1, 4-dimethylcyclohexane, and label all positions as axial or equatorial.
A person hums into the top of a well and finds that standing waves are established at frequencies of 42, 70.0, and 98 Hz. The frequency of 42 Hz is not necessarily the fundamental frequency. The...
Global branding is key to international marketing success. Each year Interbrand (www.interbrand.com) publishes a ranking of the top 100 global brands. The ranking can be accessed by searching at the...
The Pension Trust Fund maintained by the City of Linden had the following transactions during 2012. Record each transaction in the Pension Trust Fund. Ignore any other funds that may be involved in a...
QUESTION 4 ( 2 5 Marks ) Jack Ltd sells portable waterproof speakers to hypermarkets. You have been asked to assist in the preparation of the annual financial statements for the year ended 3 1 March...
William Bost organized Frontier Western Wear, Inc., early in 2014. On January 15, the corporation issued to Bost and other investors 40,000 shares of capital stock at $20 per share. After the revenue...
Approximate the market value for the following $1,000 bonds. Approximate Market Value Dollar Amount of Interest for the Existing Bond Interest Rate for Comparable Bonds Issued Today Interest Rate...
Sandra Waterman purchased a 52-week, $1,000 T-bill issued by the U.S. Treasury. The purchase price was $996. a. What is the amount of the discount? b. What is the amount Ms. Waterman will receive...
Suppose that your firm's production function has constant returns to scale. What is the long-run expansion path?
GATE 2024-EE Question
GATE 2024-EE Question
GATE 2024-EE Question
What is Netduino?
What is Appolonius theorem?
If the length of a side of a square X is random with the pdf X (x) = x/8, 0 < x < 4, and Y is the area of the square, find the pdf of Y.
The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the...
(a) Summarize Jia Lis legal rights in this situation. (b) Discuss the likelihood that Jia Li must pay Visa for any illegal charges to the account. Jia Li Sun, took her sister-in-law Ah-Iam Johnson...
(a) Should Lauren be concerned about these clauses? Why or why not? (b) Considering the rule of 78s clause, what will happen if Lauren pays off the loan before the regular due date? (c) If Lauren had...
1. What is planned buying? 2. Distinguish between needs and wants, and explain why it may be better to act as if no needs exist. 3. Describe the types of information you need to be your own expert...
ABC Corporation has an activity - based costing system with three activity cost pools - Machining, Setting Up , and Other. The company's overhead costs, which consist of equipment depreciation and...
Consolidated Balance Sheets - USD ( $ ) $ in Thousands Dec. 3 1 , 2 0 2 3 Dec. 3 1 , 2 0 2 2 Current assets: Cash and cash equivalents $ 9 8 , 5 0 0 $ 6 3 , 7 6 9 Restricted cash 2 , 5 3 2 Short -...
How does corporate governance contribute to investor confidence and stakeholder trust? Accounting

Mark Crane purchased a $1,000 corporate bond five years ago for $1,060. The bond pays 4.5 percent

Question:

Step by Step Answer:

The total return is 11500 calculated as follo...View the full answer

Personal Finance

Students also viewed these Corporate Finance questions