Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2) Total Returns (R) Return (R) = Yield (Y) + Price Change (AP) In Dollar (U.S.S): Return (R)= CF + Price Change (AP) R=CF +P

image text in transcribed
2) Total Returns (R) Return (R) = Yield (Y) + Price Change (AP) In Dollar (U.S.S): Return (R)= CF + Price Change (AP) R=CF +P - P. In Percent (%): . . R-CF+(R - B) _CF, +P, - Pai P. P. R can either be positive or negative Example 1: An 8% coupon bond was purchased one year ago for $924 and sells currently for $1,013. a) Calculate the return in U.S. Dollars for the one year period. b) Calculate the return in percent for the one year period

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Principles Of Project Finance

Authors: Rod Morrison

1st Edition

1409439828, 9781409439820

More Books

Students also viewed these Finance questions

Question

Upon what three criteria are factors of safety based?

Answered: 1 week ago

Question

Where is the position?

Answered: 1 week ago