Suppose that you just purchased a Baa rated $1000 annual coupon bond with an 7.7 %...

Suppose that you just purchased a Baa rated $1000 annual coupon bond with an 7.7 % coupon rate and a 5 -year maturity. If the yield to maturity on the bond is 2.136 %, how much did you pay?

Expert Solution

i = 2.136%, n = 5, M = $1000, C = 7.7% * $1000 = $77

P = $361.51 + $899.72

P = $1,261.22

jeff jeffy answered 2 years ago

Suppose that you just purchased a Baa rated $1000 annual coupon bond with an 9.6 %...

Suppose that you just purchased a Baa rated $1000 annual coupon bond with an 9.6 % coupon rate and a 11 -year maturity. If the yield to maturity on the bond is 3.479 %, how much did you pay?

Suppose that you purchased a Baa rated $1000 annual coupon bond with an 6.6 % coupon...

Suppose that you purchased a Baa rated $1000 annual coupon bond with an 6.6 % coupon rate and a 4-year maturity at 8 % above par value. What would the current yield (in %) be at time of purchase (4 digits)?

Suppose that you purchase a Baa rated $1000 semi-annual coupon bond with a 7.5% coupon rate...

Suppose that you purchase a Baa rated $1000 semi-annual coupon bond with a 7.5% coupon rate and a 3-year maturity yielding 5.623%, what would the price be?

Suppose that you purchased a A rated $5000 annual coupon bond with an 6.8% coupon rate...

Suppose that you purchased a A rated $5000 annual coupon bond with an 6.8% coupon rate and a 18-year maturity at par value. The current rate on 18-year US treasuries is 3%. Two years later, you look in the newspaper, and find that the yield on comparable debt is 7.223%, how much is the bond currently worth?

Suppose that you purchased a B- rated $5,000 annual coupon bond with an 16.5% coupon rate...

Suppose that you purchased a B- rated $5,000 annual coupon bond with an 16.5% coupon rate and a 9-year maturity. The current rate on 9-year US treasuries is 3%. If you purchased it at a 7.021% discount to par value, how much did you pay?

Suppose that you purchased a A rated $5,000 annual coupon bondwith an 5.3% coupon rate...

Suppose that you purchased a A rated $5,000 annual coupon bond with an 5.3% coupon rate and a 11-year maturity at par value. The current rate on 11-year US treasuries is 3%. Two years later, you sell the bond, and for a yield of 4.322%, what was your capital gain (+) or capital loss (-) in dollars and cents? (make your answer positive for a gain, negative for a loss)

Suppose you just purchased a bond with 12 years to maturity that pays an annual coupon...

Suppose you just purchased a bond with 12 years to maturity that pays an annual coupon of $36.00 and is selling at par. Calculate the one-year holding period return for each of these two cases: a. The yield to maturity is 5.50% one year from now. (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.) HPR % b. The yield to maturity is 2.30% one year from now. (Round your answer to 4...

You just purchased a 30-year bond with 6% annual coupon, par value of $1000, and 15...

You just purchased a 30-year bond with 6% annual coupon, par value of $1000, and 15 years to maturity. The bond makes payments semi-annually and the interest rate in the market is 7.0%. Calculate bond price as of today • $936.74 • $1015.76 • $918.04 • $908.04 You just purchased a 30-year bond with 6% annual coupon, par value of $1000, and 15 years to maturity. The bond makes payments semi-annually and the interest rate in the market is 7.0%....

Suppose you purchase a 9-year AAA-rated Swiss bond for par that is paying an annual coupon...

Suppose you purchase a 9-year AAA-rated Swiss bond for par that is paying an annual coupon of 6 percent and has a face value of 1,400 Swiss francs (SF). The spot rate is U.S. $0.66667 for SF1. At the end of the year, the bond is downgraded to AA and the yield increases to 8 percent. In addition, the SF depreciates to U.S. $0.74074 for SF1. a. What is the loss or gain to a Swiss investor who holds this...

Suppose you purchase a 10-year AAA-rated British bond for par that is paying an annual coupon...

Suppose you purchase a 10-year AAA-rated British bond for par that is paying an annual coupon of 9 percent and has a face value of 1,000 British Pounds (£). The spot rate is US$1.105 for £. At the end of the year, the bond is downgraded to AA and the yield increases to 11 percent. In addition, the new spot rate becomes US$0.985 for £. What is the loss or gain to a U.S. investor who holds this bond for...

Question