You buy a 11.15%, 17-year bond selling to yield 10%. 4 years
later, you sell the...
You buy a 11.15%, 17-year bond selling to yield 10%. 4 years
later, you sell the bond when it is yielding 12.5%. Calculate your
percentage return on this trade
The yield to maturity of a 10-year 4% annual coupon bond is
4%.
a.Suppose that you buy the bond today and hold it for 10
years.Assume that the interest rates go up to 5% (100 basis points
increase) after the bond is purchased and before the first coupon
is received. What is your realized rate of return?
b.Suppose that you buy the bond today and hold it for
6years.Assume that the interest rates go up to 5% (100 basis points...
The yield to maturity of a 10-year 4% annual coupon bond is
4%.
a.Suppose that you buy the bond today and hold it for 10
years.Assume that the interest rates go up to 5% (100 basis points
increase) after the bond is purchased and before the first coupon
is received. What is yourrealized rate of return?
b.Suppose that you buy the bond today and hold it for
6years.Assume that the interest rates go up to 5% (100 basis points
increase)...
A bond with 14 years to maturity paying a 4% coupon is selling
to yield 5.5%. Calculate the bond's duration when yields to
maturity change by 50bp, the bond's convexity and the % change in
the bond's price.
You buy a 6% annual coupon bond, with 10-years to maturity, when
its yield to maturity is 5%. One year later, the yield to maturity
is 6%. What is your return over the year?
You buy some shares of MJK at $500 per share. 7 years later, you
sell these shares for $645.50 per share. You received total of $100
dividends during this investment period. What is your Effective
annual rate (EAR)?
A.
55.25%
B.
12.47%
C.
5.87%
D.
45.91%
Consider a five-year bond with a 10% coupon selling at a yield
to maturity of 8%. If interest rates remain constant, one year from
now the price of this bond will be:
A. Higher
B. Lower
C. The same
D. Par
A 4-year discount bond selling for $15,000 with a face value of
$20,000 has a yield to maturity of
A) 25 percent.
B) 7.5 percent.
C) 8.3 percent.
D) 33.3 percent.
How is B the answer, would like to
know how to do this using financial calculator.
A Treasury bond that matures in 10 years has a yield of 4.25%. A
10-year corporate bond has a yield of 9.75%. Assume that the
liquidity premium on the corporate bond is 0.55%.
What is the default risk premium on the corporate bond? Round
your answer to two decimal places.
%
A Treasury bond that matures in 10 years has a yield of 4.75%. A
10-year corporate bond has a yield of 7.00%. Assume that the
liquidity premium on the corporate bond is 0.35%.
What is the default risk premium on the corporate bond? Round
your answer to two decimal places.