Rate of return on a bond

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• Coupon rate and the required return on a bond

  a bond Required return on a bond is Yield to maturity of the Bond.

• Finance-Related Problems: Bonds and Returns

  b) What will be the rate of return on the bond? c) If the inflation rate during the year is 3%, what is the real rate of return on the bond?

• Finance questions 1. What are coupon payments, and what is

  Required rate of return= 0.07 + 1.4 (0.17-0.07) = 21% 9. (CAPM) Stock A has a beta of 2.0 and a required return of 15%. The market return is 10%. What will be the required return on stock B, which has a beta of 1.4?

• Price of a Bond: Bond Valuation for Complex Systems

  a. If bond of similar risk are currently earning a 10% rate of return, how much should the Complex Systems bond sell for today?

• Bond Returns

  If their yields to maturity next year are still 10 percent, what is the rate of return on each bond? Does the higher coupon bond give a higher rate of return? One bond has a coupon rate of 8 percent, another a coupon rate of 12 percent.

• If a bond has a coupon rate of 8% but the required rate (market rate) is 10%, will this bond sell at par, discount, or a premium. Please explain in detail, not understanding the difference between the coupon rate and the market rate.

  Market rate (required rate of return) is the desired rate of return from the bond investment by the bond holders. In this case, the bond holders expect a return of 10% from the investment. The return comes from two sources.

• Bond Valuation: Rates and Relationships

  b) Use your findings in part a) to discuss the relationship between coupon interest rate on a bond and the required return and the market value of the bond relative to its par value.

• Bond returns

  What will be the rate of return on the bond? c. If the inflation rate during the year is 3 percent, what is the real rate of return on the bond? One year from now, there would be 9 years to maturity.

• Return on stocks and bonds

  6812 1) Rate of return, growth rate, return on new investments on stocks. 2) Coupon rate, current yield, and yield of maturity of a bond 3) Coupon rate on a bond so that it sells at par Please see the attachments. 1) Eastern Electric currently pays

• Evaluating bonds at various required return rates

  b) Use your findings in part a) to discuss the relationship between coupon interest rate on a bond and the required return and the market value of the bond relative to its par value.