Question
In: Finance
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.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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.
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%
An investor purchased a 3 year annual coupon bond one year ago. Its PAR value is...
An investor purchased a 3 year annual coupon bond one year ago.
Its PAR value is $1,000 and coupon rate is 6%, paid annually. At
the time you purchased the bond, its yield to maturity was 6.5%.
The investor sells the bond now after receiving the first coupon
payment.
(a) What is the annual Realised Compound Yield (RCY) from holding
the bond for 1 year if the yield to maturity remains at 6.5%?
(b) What if the yield to maturity...
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
Three years ago you purchased a $1,000 par 12-year bond with a 3.5% semi-annual coupon at...
Three years ago you purchased a $1,000 par 12-year bond with a
3.5% semi-annual coupon at a price of $875. If the current price is
$965, what was the yield to maturity of the bond when it was
purchased? A. 4.89% B. 3.97% C. 3.87% D. 5.26%
You purchased a $1,000 bond with a 4.6% semi-annual coupon and
15 years to maturity four years ago at a price of $855. If the
yield has remained constant, what should be the...
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....
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?
A one-year zero coupon bond issue was purchased at a price of$850. The principal value...
A one-year zero coupon bond issue was purchased at a price of
$850. The principal value of the bond is $1,000.The zero-coupon
bond: A. will be redeemed at $850 .B. will pay a fixed rate of
interest. C. has an implied interest of $150.
Year Zero-coupon bond yield (Sport rate) Zero-coupon bond price 1-year implied forward rate Par coupon rate...
Year
Zero-coupon bond yield (Sport rate)
Zero-coupon bond price
1-year implied forward rate
Par coupon rate
1
5%
a
2
b
c
d
6%
Please find out the values of a,b,c and d.
There is a zero coupon bond that sells for $4,394.80 and has a par value of...
There is a zero coupon bond that sells for $4,394.80 and has a
par value of $10,000. If the bond has 20 years to maturity, what is
the yield to maturity? Assume semiannual compounding.
Multiple Choice
4.20%
4.01%
4.15%
4.05%
3.99%
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