Question
In: Finance
A. You bought a 13-year, 5.8% semi-annual coupon bond today and the current market rate of...
A. You bought a 13-year, 5.8% semi-annual coupon bond today and the current market rate of return is 4%. The bond is callable in 7 years with a $1070 call premium. What price did you pay for your bond?
B. A 8.3% coupon, 8-year annual bond has a yield to maturity of 6.3%. Assuming the par value is $1,000 and the YTM does not change over the next year, what will the price of the bond be today? What will the bond price be in one year to nearest cent? What is the capital gains yield for this bond?
1. Price of the bond today
2. Price of the bond in one year
3. Capital gains yield (4 decimal places)
4. Current Yield (4 decimal places):
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Today, you bought one corporate semi-annual bond with $1,000 par value, 8% coupon rate, 10 years...
Today, you bought one corporate semi-annual bond with $1,000 par
value, 8% coupon
rate, 10 years left to maturity. The current interest rate of
the bond is 10%.
15. What is the price of the bond today?
a. $875.38
b. $877.11
c. $1,000.00
d. $1,135.90
16. How much interest (not just coupon) in total should the
corporation pay you in the
next five years?
a. $400.00
b. $445.20
c. $447.40
d. $447.07
(Hint: you need to distinguish interest from coupon....
Suppose that you buy a semi-annual coupon bond with coupon rate of 10%; the market price...
Suppose that you buy a semi-annual coupon bond with coupon rate
of 10%; the market price of $1,120, and the time to maturity of 17
years. Seven years from now, the YTM on your bond is expected to
decline by 2%, and you plan to sell. What is the holding period
yield (HPY) on your investment?
Please give the explanation or formula! Thanks!
14. Suppose that you buy a semi-annual coupon bond with coupon rate of 10%; the market...
14. Suppose that you buy a semi-annual coupon bond with coupon
rate of 10%;
the market price of $1,120, and the time to maturity of 17 years.
Seven years from now,
the YTM on your bond is expected to decline by 2%, and you plan to
sell. What is the
holding period yield (HPY) on your investment?
Could you explain the question in detail with formula plz! I
don't understand others poster answers.
Suppose that you buy a semi-annual coupon bond with coupon rate of 10%; the market price...
Suppose that you buy a semi-annual coupon bond with coupon rate
of 10%; the market price of $1,120, and the time to maturity of 17
years. Seven years from now, the YTM on your bond is expected to
decline by 2%, and you plan to sell. What is the holding period
yield (HPY) on your investment
ABC Corp. just issued some new preferred stock. The issue will
pay a $3 quarterly dividend in perpetuity, beginning 12 years from
now. If...
1. How much would the price of a 10 year semi-annual 13% coupon rate bond be,...
1. How much would the price of a 10 year semi-annual 13% coupon
rate bond be, if the market interest rate is 18%? How much would it
be if the interest rate drops to 10%? At which interest rate level
this bond will be sold for its par value?
last year you purchased a 10 year semi-annual coupon bond with coupon rate of 12% and...
last year you purchased a 10 year semi-annual coupon bond with
coupon rate of 12% and face value of $1000. the bonds yield to
maturity was 11% then. a year past and the market interest rate
increases by 1 percentage point. your one-year holding period
return is____% (rounded with two decimal places)
A 100-year corporate bond has a coupon rate of 9% with semi-annual payments. If the current...
A 100-year corporate bond has a coupon rate of
9% with semi-annual payments. If the current value
of the bond in the marketplace is $400, then what is the
Yield-to-Maturity (YTM)?
A 100-year corporate bond has a coupon rate of 9% with semi-annual payments. If the current...
A 100-year corporate bond has a coupon rate of
9% with semi-annual payments. If the current value
of the bond in the marketplace is $400, then what is the
Yield-to-Maturity (YTM)?
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 20-year semi-annual bond has just been issued with its coupon rate set at the current...
A 20-year semi-annual bond has just been issued with its coupon
rate set at the current market yield of 6 percent. How much would
the price of the bond change (in percentage terms) if the market
yield suddenly fell by 50 basis points? How much would the price
change if the yield rose by 50 basis points?
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