Bond required rate return, Finance Basics

+44 141 628 6080
[email protected]

Bond required rate return

Suppose you manage the $4 million fund that consists of four stocks with the following investments:

Stock Investment Beta

A $400,000 1.5

B 600,000 -0.5

C 1,000,000 1.25

D 2,000,000 0.75

Total $4,000,000

If the market's required rate of return is 14% and the risk-free rate is 6%, what is the bond's required rate return?

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Bond required rate return

Reference No:- TGS042997

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Effective interest rate on the loan

A firm borrows euros at 10 percent for one year. During this time period the dollar falls 17 percent against the euro. What is the effective interest rate on the loan for one year?

Q : Account for the lump-sum purchases

What is a lump-sum purchase? How do we account for the lump-sum purchases of a group of long-term assets?

Q : Effect of increasing the dividend

If the required rate of return on shares of comparable beta risk is 15% what would be the effect of increasing the dividend to $1.50, under the whittenburg rule?

Q : Value to the asset and deferred tax liability

The tax basis in the asset was $0. What method should Dempsey use to assign the value to the asset and the deferred tax liability?

Q : Bond required rate return

If the market's required rate of return is 14% and the risk-free rate is 6%, what is the bond's required rate return?

Q : Accounts of the new partnership

The Calvin-dogwood partnership owns inventory that was purchased for 65,000, has a current replacement cost of 64500 and is priced to sell for 95,000. At what amount should the inventory be recorded in the accounts of the new partnership if Alexis

Q : Brief report interpreting the results

On the basis of the confidence interval, is it reasonable to conclude that more than half of the customers use a debit card? Write a brief report interpreting the results.

Q : Problem on suta tax rate for the company

Sy company's payroll for the year i..s@1210930. Of this amount, $510,710 is for wages paid in excess of $7,000 to each individual employees. The SUTA tax rate for the company is3.2% on the first $7,000 of each employee's earning.

Q : Determining plant net investment

Calculate the plant's net investment (NINV). What is the installed cost of the plant for tax purposes?

1948679

Questions
Asked

3,689

Active Tutors

1436688

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Bond required rate return

Reference No:- TGS042997

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Effective interest rate on the loan

Q : Account for the lump-sum purchases

Q : Effect of increasing the dividend

Q : Value to the asset and deferred tax liability

Q : Bond required rate return

Q : Accounts of the new partnership

Q : Brief report interpreting the results

Q : Problem on suta tax rate for the company

Q : Determining plant net investment

Requirement to provide treatment to newborns

Describe appropriate use of intravenous vancomycin

How guardian indicate that discharge teaching was effective

Client for first time is doing a medication reconciliation

How to enhance primary prevention in the local clinics

Patient newly diagnosed with polycystic kidney disease

Describe psychiatric clinic by her primary provider

Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Bond required rate return

Reference No:- TGS042997

Recent Questions Asked Finance Basics

Q : Effective interest rate on the loan

Q : Account for the lump-sum purchases

Q : Effect of increasing the dividend

Q : Value to the asset and deferred tax liability

Q : Bond required rate return

Q : Accounts of the new partnership

Q : Brief report interpreting the results

Q : Problem on suta tax rate for the company

Q : Determining plant net investment

Asked Questions