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In: Finance
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)
Solutions
jeff jeffy answered 1 year agoRelated Solutions
1) A 10-year coupon bond with coupon rate 12% and semi-annual payment. The required return is...
1) A 10-year coupon bond with coupon rate 12% and semi-annual
payment. The required return is 10%. What is the current value of
such bond?
2) Firm ABC paid an annual dividend of $2.00 per share last
year. Management just announced that future dividends will increase
by 2 percent annually. What is the amount of the expected dividend
in year 5?
Last year company X issued a 10-year, 12% semi-annual coupon bond at its par value of...
Last year company X issued a 10-year, 12% semi-annual coupon
bond at its par value of $1000. Currently, the bond can be called
in 4 years at a price of $ 1,060 and it sells for $ 1,100. What are
the bond’s nominal YTM and nominal YTC ? Would the investor more
likely be earning YTM or YTC ?
(b) Three bonds were issues at par value of $1000 and YTM of 8
%. Evaluate the price of below: •...
Last year Janet purchased a $1,000 face value corporate bond with a 12% annual coupon rate...
Last year Janet purchased a $1,000 face value corporate bond
with a 12% annual coupon rate and a 30-year maturity. At the time
of the purchase, it had an expected yield to maturity of 12.32%. If
Janet sold the bond today for $920.86, what rate of return would
she have earned for the past year? Do not round intermediate
calculations. Round your answer to two decimal places..
Last year Janet purchased a $1,000 face value corporate bond with a 12% annual coupon rate...
Last year Janet purchased a $1,000 face value corporate bond
with a 12% annual coupon rate and a 10-year maturity. At the time
of the purchase, it had an expected yield to maturity of 9.91%. If
Janet sold the bond today for $1,150.04, what rate of return would
she have earned for the past year? Do not round intermediate
calculations. Round your answer to two decimal places.
Last year Janet purchased a $1,000 face value corporate bond with a 12% annual coupon rate...
Last year Janet purchased a $1,000 face value corporate bond
with a 12% annual coupon rate and a 30-year maturity. At the time
of the purchase, it had an expected yield to maturity of 12.32%. If
Janet sold the bond today for $920.86, what rate of return would
she have earned for the past year? Do not round intermediate
calculations. Round your answer to two decimal places..
Last year Janet purchased a $1,000 face value corporate bond with an 12% annual coupon rate...
Last year Janet purchased a $1,000 face value corporate bond
with an 12% annual coupon rate and a 20-year maturity. At the time
of the purchase, it had an expected yield to maturity of 12.44%. If
Janet sold the bond today for $1,045.35, what rate of return would
she have earned for the past year? Do not round intermediate
calculations. Round your answer to two decimal places. %
i) You just purchased a 10-year semi-annual coupon bond with a par value of $1,000 and...
i) You just purchased a 10-year semi-annual coupon bond with a
par value of $1,000 and a coupon rate of 8%. The nominal yield to
maturity is 7% per annum. Calculate the market price of the
bond.
ii)Three years later, immediately after receiving the sixth
coupon payment, you sell the bond to your best friend. Your best
friend’s nominal yield to maturity is 9% per annum. Calculate the
price paid by your best friend.
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...
Bond A: 10-year annual bond, price $1010, coupon rate 6% par $1000 bond B: 10-year semi-annual...
Bond A: 10-year annual bond, price $1010, coupon rate 6% par
$1000 bond B: 10-year semi-annual bond, price $1010, coupon rate
6%, par $1000 Does bond A has a higher cost of debt than bond
B?
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!
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