You buy a 6% annual coupon bond, with 10-years to maturity, when
its yield to maturity...
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?
Two years ago, you bought a 10-year, 6% annual coupon payment
bond when its yield-to-maturity was 8%. Right after you purchased
this bond, the yield-to-maturity on this bond increased to 9% and
stayed at the same level in the next two years. You reinvested the
coupon payments at the market rate of 9%. You just sold the bond at
9% yield-to-maturity. What is your annualized holding period
return? What is your capital gain/loss? Note: Remember
that capital gains/losses are computed...
Two years ago, you bought a 10-year, 6% annual coupon payment
bond when its yield-to-maturity was 8%. Right after you purchased
this bond, the yield-to-maturity on this bond increased to 9% and
stayed at the same level in the next two years. You reinvested the
coupon payments at the market rate of 9%. You just sold the bond at
9% yield-to-maturity. 1) What is your annualized holding period
return? 2) What is your capital gain/loss?
Assume you own a bond with a 5% coupon, a 6% yield-to-maturity,
5 years to maturity, and a $1,000 par value. It is currently priced
at $957.35. If the yield-to-maturity increases to 8.0%, what is the
price of the bond? Select one: a. $1,043.76 b. $878.33 c. $1,000 d.
$1,087.52
A 10-year bond has a 10 percent annual coupon and a yield to
maturity of 12 percent. The bond can be called in 5 years at a call
price of $1,050 and the bond’s face value is $1,000. Which of the
following statements is most correct? Please explain why.
a. The bond’s current yield is greater than 10
percent.
b. The bond’s yield to call is less than 12
percent.
c. The bond is selling at...
A zero-coupon
bond
with 4 years to
maturity and the yield to maturity of 8%. When the yield
increases,
the duration
of this bond
decreases.
a. True b.
False
2) A bond issuer often
repurchases Callable
bonds for
a discount
bond.
a. True b.
False
Credit
Default Swap (CDS) is an insurance policy on default
risk of corporate bond or loan.
a. True b.
False
4) The delivery of the
underlying asset is seldom made in forward
contracts while the...
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)...
The duration of a bond with 8% annual coupon rate when the yield
to maturity is 10% and two years left to maturity is:
Question 10 options:
1)
1.75 years
2)
1.80 years
3)
1.92 years
4)
2.96 years
what is the yield to maturity on a 6% semiannual coupon bond
with 13 years to maturity assuming that the current price of the
bond is 915.55 and the bond has a par value of 1000