Answer:
Arithmetic average return = 6.25%
Geometric average return = 5.89%
Explanation:
Annual returns of 4%, 9%, -6% and 18%
Arithmetic average return of the stock = ∑ 4%,9%,-6%,and 18% / n
= 25%/4
= 6.25%
Geometric average return formula = x1,*x2*x3 .....^1/n - 1
Geometric average return = 1.04*1.09*(1-0.06)*1.18^1/4 -1
Geometric average return = 1.04*1.09*0.94*1.18^1/4 - 1
Geometric average return = 1.25789^1/4-1
Geometric average return = 1.0589 - 1
Geometric average return = 0.0589
Geometric average return = 5.89%
review financial website or publications and three examples of a bond. for each bond gather the following information and complete the table coupon rate selling price maturity date
Answer:
Company Coupon Rate Selling Price Maturity Date
Bombardier Inc. 7.5% $96.40 3/15/2025
NGL Energy Partners LP 6.875% $97.50 10/15/2021
Disney 2.150% $101.45 9/17/2020
Explanation:
from the Plato
The Coupon Rate, Selling Price and Maturity Date are important terms in a bond contract.
What are the bonds terms?The coupon rate is the yield that determines the amount that an investor is expected to receive, the selling price is the present value of the cash amounts that will received by the bond owner and the maturity date is the date at which the bond will mature for full repayment.
The gathered information from the financial website includes:
Company Coupon Rate Selling Price Maturity Date
Bombardier Inc. 7.5% $96.40 3/15/2025
NGL Energy Partners LP 6.875% $97.50 10/15/2021
Disney 2.150% $101.45 9/17/2020
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