Assume you purchased a bond for $9,186. The bond pays $300 interest every six months. You sell the bond after 18 months for $10,000. Calculate the following: a. Income. b. Capital gain (or loss). c. Total return in dollars and as a percentage of the original investment. Review Only Click the icon to see the Worked Solution. a. The current income is $ (Round to the nearest dollar.) b. The capital gain (or loss) is $ (Enter a loss as a negative number and round to the nearest dollar.) c. The total return in dollars is $ (Round to the nearest dollar.) The total return as a percentage of the original investment is %. (Enter as a percentage and round to two decimal places.)

Assume you purchased a bond for $9,186. The bond pays $300 interest every six months. You sell the bond after 18 months for $10,000. Calculate the following: a. Income. b. Capital gain (or loss). c. Total return in dollars and as a percentage of the original investment. Review Only Click the icon to see the Worked Solution. a. The current income is $ (Round to the nearest dollar.) b. The capital gain (or loss) is $ (Enter a loss as a negative number and round to the nearest dollar.) c. The total return in dollars is $ (Round to the nearest dollar.) The total return as a percentage of the original investment is %. (Enter as a percentage and round to two decimal places.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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a. Using the information on the Excel sheet provided, Please thoroughly explain the steps on how to determine the expected levered-before-tax-annual rate of return on your capital. b. please determine the portion of the return that is expected from the annual cashflows and the portion that is expected as a result of property price appreciation.
You opened an account with an investment of $1,000 10 years ago. The ending balance in the account is $1,500. Given annual compounding, what interest rate was earned on the account?
Using Table 11-1, compute the amount of compound interest (in $) earned in 1 year and the annual percentage yield (APY) for the investment. (Round your answers to two decimal places.) Compound Interest Earned in 1 Year Annual Percentage Yield (APY) Nominal Interest Principal Rate (%) Compounded $33,000 12 monthly $ % Need Help? Read It 3 Type here to search
You invest $500 in an account that earns $10 interest each year at each year a) at the end of 24months , what is the balance b) at the end of 30months, what is the balance c) at the end of 5years, what is the balance d) find the linear equation that gives the balance after t years
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You plan to invest in an account which pays 4% compounded continuously. If the investment period is for 7 years, then A(P) = Pe0.04-7-Pe028 gives the total balance of P dollars. a Find a formula for A'(P) Find and interpret A'(8000) b. c. Compare the approximation to the actual change..
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Vijay

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