Financial
posted by SAM .
Suppose a Midwest Telephone and Telegraph (MTT) Company bond,
maturing in 1 year, can be purchased today for $975. Assuming that the
bond is held until maturity, the investor will receive $1,000 (principal) plus
6 percent interest (that is, 0.06 3 $1,000 5 $60). Determine the percentage
holding period return on this investment.

Suppose a Midwest Telephone and Telegraph (MTT) Company bond, maturing in 1 year, can
be purchased today for $975. Assuming that the bond is held until maturity, the investor will
receive $1,000 (principal) plus 6 percent interest (that is, 0.06 3 $1,000 5 $60). Determine the
percentage holding period return on this investment. 
Percentage Holding Period Return = [($1,000  $975 + $60)/$975] x 100% = 8.717% (8.72% rounded).

Six months ago, you purchased a tract of land in an area where a new
industrial park was rumored to be planned. This land cost you $110,000, and
the seller offered you an interestfree loan for 70 percent of the land cost.
Today, the industrial park project was formally announced, and an attorney
for the developer has just offered you $190,000 for your land. If you accept
this offer, what will be your holding period return on this investment? 
8.Six months ago, you purchased a tract of land in an area where a new industrial park was rumored to be planned. This land cost you $110,000, and the seller offered you an interestfree loan for 70 percent of the land cost. Today, the industrial park project was formally announced, and an attorney for the developer has just offered you $190,000 for your land. If you accept this offer
Respond to this Question
Similar Questions

Math
The Garraty company has two bond issues outstanding. Both bonds pa $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years and Bond S a maturity of 1 year. A). What will be the value of each of these bonds when … 
Economics  Bonds
The Garraty company has two bond issues outstanding. Both bonds pa $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years and Bond S a maturity of 1 year. A). What will be the value of each of these bonds when … 
Finance
The Carter Company's bond mature in 10 years have a par value of 1,000 and an annual coupon payment of $80. The market interest rate for the bond is 9%. What is the price of these bonds The coupon rate on the bond, (interest/principal … 
bond valuation
Bond valuation The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at maturity. Bondf L has a maturity of 15 years, and Bond S a maturity of 1 year. a. What will the value of each of … 
bond valuation
Bond valuation The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at maturity. Bondf L has a maturity of 15 years, and Bond S a maturity of 1 year. a. What will the value of each of … 
Finance
Suppose a Midwest Telephone and Telegraph (MTT) Company bond, maturing in 1 year, can be purchased today for $975. Assuming that the bond is held until maturity, the investor will receive $1,000 (principal) plus 6 percent interest … 
accounting
4. Suppose a Midwest telephone company and telegraph MTT company bond maturing in one year can be purchased today for $975 assuming that that the bond is held until maturity the investor will receive $1000 principal plus 6 percent … 
FINANCE
Suppose a Midwest Telephone and Telegraph (MTT) Company bond, maturing in 1 year, can be purchased today for $975. Assuming that the bond is held until maturity, the investor will receive $1,000 (principal) plus 6 percent interest … 
Finance
An investor purchases a 10year U.S. government bond for $800. The bond's coupon rate is 10 percent and,? 
Finance
2. You are now considering adding a corporate bond to your investment portfolio. The bond was issued last year to have 10 years to maturity (so it has 9 years remaining to maturity from today) The bond has an 8% coupon, and was sold …