Question
In: Finance
A bond with exactly five years until maturity paying 3% p.a. coupons semi-annually and with a...
A bond with exactly five years until maturity paying 3% p.a. coupons semi-annually and with a face value of $100 was purchased at a yield of 3.5% p.a. The bond was sold exactly two years later for a yield of 2% p.a. All coupons were reinvested at 3% p.a. Calculate the realised yield-to-maturity on this bond.
Solutions
jeff jeffy answered 5 months agoRelated Solutions
A bond with exactly five years until maturity paying 6% p.a. coupons semi-annually and with a...
A bond with exactly five years until maturity paying 6% p.a.
coupons semi-annually and with a face value of $100 was purchased
at a yield of 6.5% p.a. The bond was sold exactly two years later
for a yield of 5% p.a. All coupons were reinvested at 6% p.a.
Calculate the realised yield-to-maturity on this bond.A bond with
exactly five years until maturity paying 6% p.a. coupons
semi-annually and with a face value of $100 was purchased at a
yield...
A bond with 15 years to maturity is paying 6% coupons semi-annually, and the last coupon...
A bond with 15 years to maturity is paying 6% coupons
semi-annually, and the last coupon has just been paid. The face
value is $1,000 and the yield to maturity is 8% p.a. What is the
price today closest to: A) $827.08 B) $932.95 C) $1,000.00 D)
$1,324.32 E) None of the above
IBM’s bond has 5 years remaining to maturity. Coupons are paid semi-annually. The bonds have a...
IBM’s bond has 5 years remaining to maturity. Coupons are paid
semi-annually. The bonds have a $1,000 par value, and the coupon
rate is 5%. The current price of the bond is $1050. What is the
yield to maturity?
Ann purchased a treasury bond with exactly six years until maturity, which pays coupon annually. The...
Ann purchased a treasury bond with exactly six years until
maturity, which pays coupon annually. The bond has a par value of
$1,000, a 5% annual coupon rate, and a current yield to maturity
(YTM) of 6%. After exactly three years Ann sold the bond to another
investor, with the yield to maturity of 4%. She was
always able to re-invest all her coupon income at a return of 3%.
All rates are annual. What is her ANNUALIZED holding period return...
Ann purchased a treasury bond with exactly six years until maturity, which pays coupon annually. The...
Ann purchased a treasury bond with exactly six years until
maturity, which pays coupon annually. The bond has a par value of
$1,000, a 5% annual coupon rate, and a current yield to maturity
(YTM) of 6%. After exactly three years Ann sold the bond to another
investor, with the yield to maturity of 4%. She was always able to
re-invest all her coupon income at a return of 3%. All rates are
annual. What is her ANNUALIZED holding period...
Suppose there is a 15 year bond with at 5.5% coupon rate, paying coupons semi-annually, and...
Suppose there is a 15 year bond with
at 5.5% coupon rate, paying coupons semi-annually, and a face value
equal to $1000. Suppose the yield to maturity is
6.5%,
and the bond is
currently selling at $1050. Should you buy the bond? Explain.
Suppose you have obtained a $15,000 loan at an APR of 16%, with
annual payments.
loan term is 5 years
Fill out the first
year of the amortization schedule for this loan:
Year
Begin Balance
Total Payment
Interest...
Suppose there is a 15 year bond with at 5.5% coupon rate, paying coupons semi-annually, and...
Suppose there is a 15 year bond with
at 5.5% coupon rate, paying coupons semi-annually, and a face value
equal to $1000. Suppose the yield to maturity is 6.5%,
and the bond is currently selling at $1050. Should you buy the
bond? Explain.
Suppose you have obtained a $15,000 loan at an APR of 16%, with
annual payments.
Fill out the first
year of the amortization schedule for this loan:
Year
Begin Balance
Total Payment
Interest Paid
Principal Paid
End Balance...
A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a...
A 30-year maturity, 8% coupon bond paying coupons semiannually
is callable in five years at a call price of $1,100. The bond
currently sells at a yield to maturity of 7% APR , compounded
semi-annually. What is the yield to call (annualized).
A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a...
A 30-year maturity, 8% coupon bond paying coupons semiannually
is callable in five years at a call price of
$1,020. The bond currently sells for $1,059.34.
a) What are the yield to maturity and the yield to call of the
bond?
b) What would be the yield to call annually if the call price were
only $970?
c) What would be the yield to call annually if the call price were
$1,020, but the bond could be called in
two...
A 10-year maturity, 7.5% coupon bond paying coupons semiannually is callable in five years at a...
A 10-year maturity, 7.5% coupon bond paying coupons semiannually
is callable in five years at a call price of $1,200. The bond
currently sells at a yield to maturity of 5% (2.5% per
half-year).
a. What is the yield to call annually?
(Do not round intermediate calculations. Round your answer
to 3 decimal places.)
b. What is the yield to call annually if the
call price is only $1,150? (Do not round intermediate
calculations. Round your answer to 3 decimal...
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