You purchased a bond last year that pays an 8% annual coupon with a face value...

You purchased a bond last year that pays an 8% annual coupon with a face value of $1,000. At the time of purchase, the bond had a yield to maturity of 10% and had 10 years until maturity. Today, the bond trades at a yield to maturity of 9%. What was the percentage return of this investment over the last year? (20 pts)

a.	8.00%
b.	9.00%
c.	15.21%
d.	16.30%

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used.

ANSWER : D: 16.30%

jeff jeffy answered 1 year ago

Last year, Joan purchased a $1,000 face value corporate bond with an 8% annual coupon rate...

Last year, Joan purchased a $1,000 face value corporate bond with an 8% annual coupon rate and a 25-year maturity. At the time of the purchase, it had an expected yield to maturity of 9.62%. If Joan sold the bond today for $1,053.36, what rate of return would she have earned for the past year? Round your answer to two decimal places.

Last year Janet purchased a $1,000 face value corporate bond with an 8% annual coupon rate...

Last year Janet purchased a $1,000 face value corporate bond with an 8% annual coupon rate and a 30-year maturity. At the time of the purchase, it had an expected yield to maturity of 12.56%. If Janet sold the bond today for $927.06, 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 8% annual coupon rate and a 25-year maturity.

BOND RETURNSLast year Janet purchased a $1,000 face value corporate bond with an 8% annual coupon rate and a 25-year maturity. At the time of the purchase, it had an expected yield to maturity of 11.47%. If Janet sold the bond today for $966.34, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.

A 3-year $1000 face value bond pays an annual coupon of 8% and has a ytm...

A 3-year $1000 face value bond pays an annual coupon of 8% and has a ytm of 4%. What is this bond's price? What is this bond's duration?

Last year Janet purchased a $1,000 face value corporate bond with an 7% annual coupon rate...

Last year Janet purchased a $1,000 face value corporate bond with an 7% annual coupon rate and a 20-year maturity. At the time of the purchase, it had an expected yield to maturity of 9.33%. If Janet sold the bond today for $1,091.83, 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 9% annual coupon rate...

Last year Janet purchased a $1,000 face value corporate bond with an 9% annual coupon rate and a 15-year maturity. At the time of the purchase, it had an expected yield to maturity of 10.4%. If Janet sold the bond today for $1,069.01, 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 a 9% annual coupon rate...

Last year Janet purchased a $1,000 face value corporate bond with a 9% annual coupon rate and a 30-year maturity. At the time of the purchase, it had an expected yield to maturity of 8.85%. If Janet sold the bond today for $960.01, 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 7% annual coupon rate...

Last year Janet purchased a $1,000 face value corporate bond with a 7% annual coupon rate and a 15-year maturity. At the time of the purchase, it had an expected yield to maturity of 7.04%. If Janet sold the bond today for $1,004.41, 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.

Question

You purchased a bond last year that pays an 8% annual coupon with a face value...

Solutions

Expert Solution

Related Solutions

Last year, Joan purchased a $1,000 face value corporate bond with an 8% annual coupon rate...

Last year Janet purchased a $1,000 face value corporate bond with an 8% annual coupon rate...

Last year Janet purchased a $1,000 face value corporate bond with an 8% annual coupon rate and a 25-year maturity.

A 3-year $1000 face value bond pays an annual coupon of 8% and has a ytm...

Last year Janet purchased a $1,000 face value corporate bond with an 7% annual coupon rate...

Last year Janet purchased a $1,000 face value corporate bond with an 9% annual coupon rate...

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 9% annual coupon rate...

Last year Janet purchased a $1,000 face value corporate bond with a 7% annual coupon rate...

Last year Janet purchased a $1,000 face value corporate bond with a 12% annual coupon rate...