You purchase a 20-year, $1,000 par value 6% coupon bond with annual payments with a yield...

You purchase a 20-year, $1,000 par value 6% coupon bond with annual payments with a yield to maturity of 8%. 1 year later after receiving a coupon payment, the yield to maturity has decreased to 7% and you sell the bond. What is your total rate of return on the investment over the year?

Expert Solution

jeff jeffy answered 2 years ago

A $1,000 par value bond, has an annual coupon rate of 6 percent, an annual yield...

A $1,000 par value bond, has an annual coupon rate of 6 percent, an annual yield to maturity of 7.5 percent, and 10 years until maturity. Assuming semi-annual coupon payments: d. If the bond were selling for $929, what would the effective yield-to-maturity if you reinvest coupon payments at 9 percent? ***please show the work or what is entered in calculator***

A 10-year maturity bond with par value of $1,000 makes annual coupon payments at a coupon...

A 10-year maturity bond with par value of $1,000 makes annual coupon payments at a coupon rate of 8%. Find the bond equivalent and effective annual yield to maturity of the bond for the following bond prices. (Round your answers to 2 decimal places.) Bond prices: 950, 1000, 1050 What are the Bond Equivalent Annual Yield to Maturity and Effective Annual Yield to Maturity

What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond...

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A two-year bond with par value $1,000 making annual coupon payments of $102 is priced at...

A two-year bond with par value $1,000 making annual coupon payments of $102 is priced at $1,000. . What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) Yield to maturity % b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 8.2%, (b) 10.2%, (c) 12.2%?(Do not round intermediate calculations.Round your answers to 2 decimal places.) Interest Rate Realized YTM 8.2...

A 6 percent coupon bond that has a $1,000 par value, semiannual coupon payments and a...

A 6 percent coupon bond that has a $1,000 par value, semiannual coupon payments and a yield to maturity of 5.25 percent. The bond matures in 9 years. What is the price of the bond, What will happen to the price if market interest rates rise to 6.45 percent, what can you say about the relationship between the price of a bond and the market interest rate?

A zero-coupon bond has a par value of $1,000 and a yield-to-maturity of 5%. You purchase...

A zero-coupon bond has a par value of $1,000 and a yield-to-maturity of 5%. You purchase the bond when it has exactly 17 years remaining until maturity. You hold the bond for 6 months and then sell it. If the bond's yield-to-maturity is 9% when you sell it, what is your percentage return over this 6-month holding period? When computing bond prices, use a semi-annual compounding period. Enter your answer as a decimal and show 4 decimal places. For example,...

3. A 20-year maturity coupon bond with face value of $1,000 makes annual coupon payments and...

3. A 20-year maturity coupon bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 20%. When the bond sells at 1500, the YTM is____; When the bond sells at 1000, the YTM is _____; When the bond sells at 800, the YTM is _____.

1.A three-year bond with par-value $1,000 making annual coupon payments of $106 is priced at $1,000....

1.A three-year bond with par-value $1,000 making annual coupon payments of $106 is priced at $1,000. At the end of the first year, the interest rate turns out to be 8.6%. The investor re-invest the bond's coupon payments at 8.6%, What is the investor's, realized compound yield to maturity? 2.An investment pays out $180 at the end of each December for 3 years. An investor wants to buy the investment at the end of April, before the next $180 payment....

. A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently...

. A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $780. If the yield to maturity remains at the current rate, what will the price be 10 years from now?

Find the yield to maturity for a 15-year, 8% annual coupon rate, $1,000 par value bond...

Find the yield to maturity for a 15-year, 8% annual coupon rate, $1,000 par value bond if the bond sells for $1,218 currently? We assume that interest is paid on this bond annually. 2.90% 5.79% 6.64% 6.86% calculate the bond’s current yield. 6.20% 6.57% 6.80% 7.18% calculate the bond’s capital gain yield. -0.78% 0.78% 6.22% 6.57%

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