Question
In: Finance
One year ago you purchased an 8% coupon rate bond when it was first issued and...
One year ago you purchased an 8% coupon rate bond when it was first issued and priced at its face value of $1,000. Yesterday the bond paid its second semi-annual coupon. The bond currently has 7 years left until maturity and has a yield to maturity of 6%. If you sell the bond today, what will your return have been from this investment during the year you held the bond and collected the coupon payments?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
One year ago you purchased an 8% coupon rate bond when it was first issued and...
One year ago you
purchased an 8% coupon rate bond when it was first issued and
priced at its face value of $1,000. Yesterday the bond paid its
second semi-annual coupon. The bond currently has 7 years left
until maturity and has a yield to maturity of 4%. If you sell the
bond today, what will your return have been from this investment
during the year you held the bond and collected the coupon
payments?
a. -10.6%
b. -1.9%
c....
QUESTION 16 One year ago you purchased an 8% coupon rate bond when it was first...
QUESTION 16
One year ago you purchased an 8% coupon rate bond when it was first
issued and priced at its face value of $1,000. Yesterday the bond
paid its second semi-annual coupon. The bond currently has 7 years
left until maturity and has a yield to maturity of 6%. If you sell
the bond today, what will your return have been from this
investment during the year you held the bond and collected the
coupon payments?
a. -10.6%
b....
One year ago you purchased a 8-year, 8% coupon bond. Today, you sold the bond at...
One year ago you purchased a 8-year, 8% coupon bond. Today, you
sold the bond at a YTM of 8%. If the current yield was 6.96%, what
was your total return on this investment?
Par value is $1000
one year ago you purchased a 30-year 8% annual coupon bond at par. today, you receive...
one year ago you purchased a 30-year 8% annual coupon bond at
par. today, you receive the first coupon and sold the bond at a
market rate of interest of 6%. what rate of return did you
earn?
8%, 19.12%, 6%,22.13%
You purchased a zero coupon bond one year ago for $113.35. The bond has a par...
You purchased a zero coupon bond one year ago for $113.35. The
bond has a par value of $1,000 and the market interest rate is now
9 percent. If the bond had 25 years to maturity when you originally
purchased it, what was your total return for the past year? Assume
semiannual compounding. (Do not round intermediate calculations and
enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
You purchased a zero coupon bond one year ago for $121.53. The bond has a par...
You purchased a zero coupon bond one year ago for $121.53. The
bond has a par value of $1,000 and the market interest rate is now
8 percent. If the bond had 27 years to maturity when you originally
purchased it, what was your total return for the past year? Assume
semiannual compounding.
A $1,000 par value bond was issued five years ago at a coupon rate of 8...
A $1,000 par value bond was issued five years ago at a coupon
rate of 8 percent. It currently has 15 years remaining to maturity.
Interest rates on similar debt obligations are now 10 percent. Use
Appendix B and Appendix D for an approximate answer but calculate
your final answer using the formula and financial calculator
methods.
a. Compute the current price of the bond using
an assumption of semiannual payments. (Do not round
intermediate calculations and round your answer...
A $1,000 par value bond was issued five years ago at a coupon rate of 8...
A $1,000 par value bond was issued five years ago at a coupon
rate of 8 percent. It currently has 10 years remaining to maturity.
Interest rates on similar debt obligations are now 10 percent. Use
Appendix B and Appendix D for an approximate answer but calculate
your final answer using the formula and financial calculator
methods.
a. Compute the current price of the bond using
an assumption of semiannual payments. (Do not round
intermediate calculations and round your answer...
Suppose you bought a bond with an annual coupon rate of 8 percent one year ago for $880. The bond sells for $910 today.
Suppose you bought a bond with an annual coupon rate of 8 percent one year ago for $880. The bond sells for $910 today. a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? Total dollar return = $_______ b. What was your total nominal rate of return on this investment over the past year? Nominal rate of return = _______ % c. If the inflation rate last year was 3 percent, what was your total...
A year ago, Perlman Co. issued a 15-year bond, at a coupon rate of 4.9% per...
A year ago, Perlman Co. issued a 15-year bond, at a
coupon rate of 4.9% per annum paid semi-annually. If the bonds have
a par value of $1000, and YTM is 4.5%, what is the current bond
price?
Select one:
a. $1041.00
b. $1041.22
c. $1040.00
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