Odell pays $8500 for a bond that pays an annual dividend of $300. The bond has a
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Odell pays $8500 for a bond that pays an annual dividend of $300. The bond has a par value of $10 000. If Odell holds the bond until it matures in exactly three years’ time, what will be his return on investment? What will be the annualized return on his investment?
DividendA dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Annual dividend 300 No of years 3 years Total dividend 3003 900 Par Va...View the full answer
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