Question
In: Finance
You buy a 20-year bond with a coupon rate of 9.6% that has a yield to...
You buy a 20-year bond with a coupon rate of 9.6% that has a yield to maturity of 10.6%. (Assume a face value of $1,000 and semiannual coupon payments.) Six months later, the yield to maturity is 11.6%. What is your return over the 6 months?
A bond has a face value of $1,000, a coupon of 5% paid annually, a maturity of 40 years, and a yield to maturity of 8%. What rate of return will be earned by an investor who purchases the bond for $642.26 and holds it for 1 year if the bond’s yield to maturity at the end of the year is 9%?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
You buy a 20-year bond with a coupon rate of 9.6% that has a yield to...
You buy a 20-year bond with a coupon rate of 9.6% that has a
yield to maturity of 10.6%. (Assume a face value of $1,000 and
semiannual coupon payments.) Six months later, the yield to
maturity is 11.6%. What is your return over the 6 months?
1. You buy a 20-year bond with a coupon rate of 9.0%that has a yield...
1. You buy a 20-year bond with a coupon rate of 9.0%
that has a yield to maturity of 10.1%. (Assume a face value of
$1,000 and semiannual coupon payments.) Six months later, the yield
to maturity is 11.1%. What is your return over the 6
months?Rate of return:2. Consider two 30-year maturity bonds. Bond A has a
coupon rate of 4%, while bond B has a coupon rate of 12%. Both
bonds pay their coupons semiannually.a. Compute the prices...
A 20-year XXX bond has a coupon rate of 8 percent and sells at a yield...
A 20-year XXX bond has a coupon rate of 8 percent and sells at a
yield to maturity of 10 percent.
1. Assuming annual coupon payments, at what price does the bond
sell?
2. If XXX wants to issue a new 20-year bond at face value, what
coupon rate must the bond offer?
You buy a five-year bond that has a 7% yield to maturity and a 7% coupon...
You buy a five-year bond that has a 7% yield to maturity and a
7% coupon paid annually. In one year, promised yields to maturity
have fallen to 6%. What is your holding period return? Answer in
percentages with two decimal places.
You buy a four-year bond that has a 3.50% current yield and a 3.50% coupon (paid...
You buy a four-year bond that has a 3.50% current yield and a
3.50% coupon (paid annually). In one year, promised yields to
maturity have risen to 4.50%. What is your holding-period return?
(Do not round intermediate calculations. Round your answer to 2
decimal places.) Holding-period return %
You buy an eight-year bond that has a 5.50% current yield and a 5.50% coupon (paid...
You buy an eight-year bond that has a 5.50% current yield and a
5.50% coupon (paid annually). In one year, promised yields to
maturity have risen to 6.50%. What is your holding-period
return?
A ten year bond has a coupon rate of 7% and a yield to maturity of...
A ten year bond has a coupon rate of 7% and a yield to maturity
of 9%, will you be willing to pay $1100 for this bond. Please
explain.
You buy a(n) eight-year bond that has a 6.75% current yield and a 6.75% coupon (paid...
You buy a(n) eight-year bond that has a 6.75% current yield and
a 6.75% coupon (paid annually). In one year, promised yields to
maturity have risen to 7.75%. What is your holding-period return?
(Do not round intermediate calculations. Round your answer to 2
decimal places.) Holding-period return %
You buy a bond for $970 that has a coupon rate of 7.00% and a maturity...
You buy a bond for $970 that has a coupon rate of 7.00% and a
maturity of 9-years. A year later, the bond price is $1,120.
(Assume a face value of $1,000 and annual coupon payments.)
a. What is the new yield to maturity on the
bond? (Do not round intermediate calculations. Enter your
answer as a percent rounded to 2 decimal places.)
b. What is your rate of return over the year?
(Do not round intermediate calculations. Enter your...
what is the yield to call of a bond that has a coupon rate of a...
what is the yield to call of a bond that has a coupon
rate of a 10.25% payable semiannually, a yield to maturity of
9.75%. The bond has 12 years to maturity, 3 years to call and the
call premium is two year's interest?
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