What is the rate of return for an investor who pays 1054.47

1 Answer to What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19? Hint: Use the rate of return formula and remember to include not only the change in price but also the coupon payments you received. - 470024 This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here! 4. What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19?

In this case, investors would be willing to pay a price above $1,000 for a bond the only way an investor can obtain a higher rate of return on a bond is for its  24 Feb 2020 Setting the bond yield equal to its coupon rate is the simplest definition. In return, bond issuers agree to pay investors interest on bonds  When investing in bonds it's imperative to understand how prices, rates, and That's because an investor buying the bond has to pay more for the same return. What is the rate of return for an investor who pays $1,054.47 for a 3-year bond with coupon of 6.5% and sells the bond 1 year later for $1,037.19? 4.53% 5.33% 5.16% 4.92% What is the rate of return for an investor who pays $1054.47 for a three-year bond with a 7% What is the rate of return for an investor who pays 1054.47 for a three-year bond with a 7 coupon and sells the bond one year later for 1037.19?

9 Safe Investments With High Returns High-Yield Savings Accounts. The bottom line: Federal Deposit Insurance Corp. insurance means your money is 100% safe and it’s easy to get a hold of in a pinch, making the 2% returns on many high-yield savings accounts a pretty outstanding deal. Best for: Stashing your emergency fund; investors looking for options without any risks

Rate of Return: A rate of return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost. Gains on investments are defined as income 1 Answer to What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19? Hint: Use the rate of return formula and remember to include not only the change in price but also the coupon payments you received. - 470024 This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here! 4. What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19? What’s considered a “good” return on your investments depends a lot on the kind of investor you are. For example, if you’re investing more conservatively — because you need your money soon or the thought of losing any amount keeps you up at night — your expected rate of return will be lower than a more aggressive investor may be after. A bond's return on investment or rate of return is also known as its yield. There are several different types of yield calculations. The most comprehensive is the total return because it factors

What is the rate of return for an investor who pays $1,054.47 for a 3-year What is the rate of return for an investor who pays $1,054.47 for a 3-year bond with coupon of.

When you make investments, you have the potential to make money (called a return). Money in a bank account pays interest, which is your return. You earn that small amount of interest for allowing the bank to keep your money. The bank then turns around and lends your money to some other person or organization […] Calculate your earnings and more. Meeting your long-term investment goal is dependent on a number of factors. This not only includes your investment capital and rate of return, but inflation 9 Safe Investments With High Returns High-Yield Savings Accounts. The bottom line: Federal Deposit Insurance Corp. insurance means your money is 100% safe and it’s easy to get a hold of in a pinch, making the 2% returns on many high-yield savings accounts a pretty outstanding deal. Best for: Stashing your emergency fund; investors looking for options without any risks

9 Safe Investments With High Returns High-Yield Savings Accounts. The bottom line: Federal Deposit Insurance Corp. insurance means your money is 100% safe and it’s easy to get a hold of in a pinch, making the 2% returns on many high-yield savings accounts a pretty outstanding deal. Best for: Stashing your emergency fund; investors looking for options without any risks

What’s considered a “good” return on your investments depends a lot on the kind of investor you are. For example, if you’re investing more conservatively — because you need your money soon or the thought of losing any amount keeps you up at night — your expected rate of return will be lower than a more aggressive investor may be after. A bond's return on investment or rate of return is also known as its yield. There are several different types of yield calculations. The most comprehensive is the total return because it factors When you make investments, you have the potential to make money (called a return). Money in a bank account pays interest, which is your return. You earn that small amount of interest for allowing the bank to keep your money. The bank then turns around and lends your money to some other person or organization […] Calculate your earnings and more. Meeting your long-term investment goal is dependent on a number of factors. This not only includes your investment capital and rate of return, but inflation 9 Safe Investments With High Returns High-Yield Savings Accounts. The bottom line: Federal Deposit Insurance Corp. insurance means your money is 100% safe and it’s easy to get a hold of in a pinch, making the 2% returns on many high-yield savings accounts a pretty outstanding deal. Best for: Stashing your emergency fund; investors looking for options without any risks

What is the rate of return for an investor who pays $1,054.47 for a three year bond with a 7% coupon and sells - Answered by a verified Financial Professional We use cookies to give you the best possible experience on our website.

(1,037.19+65)-1,054.47/ 1,054.47 = 4.53% What is the rate of return for an investor who pays $1,054.47 for a 3-year bond with coupon of 6.5% and sells the bond 1 year later for $1,037.19? Look for the PV → $925.39 What is the rate of return for an investor who pays $1,054.47 for a 3-year What is the rate of return for an investor who pays $1,054.47 for a 3-year bond with coupon of. What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19? 5.00% Rate of Return = ($70.00 - $17.28)/$1,054.47 = $52.72/$1,054.47 What is the rate of return for an investor who pays $1,054.47 for a three year bond with a 7% coupon and sells - Answered by a verified Financial Professional We use cookies to give you the best possible experience on our website. Answer to What is the rate of return for an investor who pays $1,054.47 for a 3-year bond with coupon of 6.5% and sells the bond 1 Skip Navigation Chegg home

Answer to What is the rate of return for an investor who pays $1054.47 for a three -year bond with a 7% coupon and sells the bond 24 May 2019 On the other hand, consider an investor that pays $1,000 for a $1,000 par value 5 % coupon bond. The investment earns $50 in interest income  In this case, investors would be willing to pay a price above $1,000 for a bond the only way an investor can obtain a higher rate of return on a bond is for its  24 Feb 2020 Setting the bond yield equal to its coupon rate is the simplest definition. In return, bond issuers agree to pay investors interest on bonds  When investing in bonds it's imperative to understand how prices, rates, and That's because an investor buying the bond has to pay more for the same return.