A bond is issued with a coupon of 6% paid annually, a maturity of 38 years, and a yield to maturity of 9%. What rate of return will be earned by an investor who purchases the bond for $679.28 and holds it for 1 year if the bond's yield to maturity at the end of the year is 12% ?

Q: A bond that matures in 7 years sells for $1020. The bond has a face value of $1000 and a yield to…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 18 years,…

A: We are required to calculate the bond value  in one year i.e. after one year in this question from…

Q: bonds

A: Formula to calculate bond price i:s: Bond price = coupon*1-1/(1+ytm)^n       + Face…

Q: A corporate bond pays interest annually and has 4 years to maturity, a face value of $1,000 and a…

A: Face Value = $1,000Coupon rate = 3.8%No of compounding periods per year = 1Interest per annum = pmt…

Q: A bond with a face value of $1,000 pays 6% annual coupon on a semiannual basis. The maturity is 8…

A: The face Value is $1,000 The annual Coupon rate is 6% Yield to maturity is 12% To Find: Duration of…

Q: Consider a 10-year bond with a face value of $1,000 that pays a 2.5% annual coupon i.e., $25 coupon…

A: Given: Particulars Amount Face value (FV) $1,000 Number of periods (NPER) 10 Coupon rate…

Q: You own a bond that pays $73 in interest annually. The face value is $1,000 and the current market…

A: The Given set of data is Interest payment (C) annually is $73 The face value (F) is $1000 The…

Q: A bond matures in 5 years and pays a 6.00% annual coupon. The bond has a face value of $1,000 and…

A: concept. 1. current yield of bond = Interest * 100current price of bond   2. yield to maturity of…

Q: A bond that matures in 16 years has a ​$1,000 par value. The annual coupon interest rate is 12…

A: Bonds are debt instruments issued by companies. The issuing company pays periodic interests or…

Q: A bond that matures in 12 years has a ​$1,000 par value. The annual coupon interest rate is 7…

A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…

Q: A bond certificate with a value of P 1,081,038.07 has a par value of P 1,000,000.00 and a redemption…

A: Using financial Calculator, PV (Price) = P 1,081,038.07  FV (Face Value) =  P 1,030,000.00 N = 10…

Q: rate of return

A: SOLUTION The annual coupon rate of the bond is 4% paid annually. No. of years to maturity is 30…

Q: at what price do you expect the bond to sell a year from now? If it helps, you may use

A: Information Provided: Par value = $1000 Term = 20 years Price of bond = $925 Coupon rate = 9%…

Q: A bond is issued with a coupon of 4% paid annually, a maturity of 39 years, and a yield to maturity…

A: The price of the bond is the present value of all the coupon payments and the par value discounted…

Q: Assume that you purchase a five-year, $1,000 par value bond, with a 6 percent coupon and a yield of…

A: Calculating the current price of the bond. We have,Current price of bond = C [1 – (1 / (1+r)n ] / r…

Q: A 20-year Treasury bond is issued with face value of $1,000, paying interest of $68 per year. If…

A: Coupon rate can be calculated by using this equation. Coupon rate =InterestFace value*100

Q: You buy an 8.9% coupon, paid annually, 8-year maturity bond for $945. A year later, the bond price…

A: A bond is a kind of debt security issued by the government and private companies to the public for…

Q: what is the bond rate of return over the year?

A: Bond Rate of Return: It refers to the gain or loss of a security/investment for a certain period.…

Q: You are considering a bond with a coupon rate of 10% per annum. Coupons are paid semiannually. The…

A: Computation:

Q: A bond that matures in 7 years sells for $1,020. The bond has a face value of$1,000 and a yield to…

A: Given information: Face value of bond is $1,000 Price of bond is $1,020 Yield to maturity is…

Q: A bond is issued with a coupon rate of 6% (paid out semi-annually), a maturity of 19 years and a…

A: Price of bond is present value of coupon payment plus present value of par value of the bond.

Q: What is the duration of the following bond:$1,000par value,6%annual coupon, 4 years to maturity, and…

A: Par value = $1,000Annual coupon rate = 6%Yield to maturity (YTM) = 6.5%Years to maturity = 4 years

Q: A bond is issued with a coupon of 4% paid annually, a maturity of 39 years, and a yield to maturity…

A: Annual coupon amount (C) = $40 (i.e. $1000 * 0.04)Yield to maturity after 1 year (r) = 0.09Maturity…

Q: A bond is issued with a coupon of 4% paid annually, a maturity of 36 years, and a yield to maturity…

A: Rate of return  = * 100

Q: A bond has 10 years until maturity, carries a coupon rate of 9%, and sells for $1,100. Interest is…

A: Yield to Maturity:- Yield to Maturity: is the expected rate of return that the investors expects to…

Q: A bond has 10 years remaining to maturity, pays annual coupons (yesterday) of 56, and has a year is…

A: C is the annual coupon payment, which is $6.F is the face value of the bond, which is $100.P is the…

Q: A 15-year Treasury bond is issued with face value of $1,000, paying interest of $58 per year. If…

A: The coupon rate can be calculated as:

Q: ly issued bond pays its coupons once annually. Its coupon rate is 8.7%, its maturity is 20 years, an…

A: Price of a bond is present value of the coupon payment plus the present value of the par value of…

Q: A 30-year bond pays interest semiannually, has a par value of $1,000, a coupon rate of 15%, and has…

A: Given: Particulars Amount Par value (FV) 1000 Coupon rate 15% Years 30 Market rate 7%

Q: A bond is issued with a coupon of 5% paid annually, a maturity of 31 years, and a yield to maturity…

A: A bond refers to an instrument that is used to raise debt capital for the issuing company from…

Q: A three-year bond is issued with a 9% coupon paid annually, and a maturity value of £100. If the…

A: Par value = £100 Coupon rate = 9% Coupon rate = 100*0.09= £9 Yield to maturity = 12% Years to…

Q: A 20 year, at 10% semiannual coupon bond, with a par value of $1000 sells for $1200 (assume that the…

A: Current yield With annual coupon payment and current market price, the bond's current yield is…

Q: You purchase a bond for $825. It pays a semi-annual coupon of 4 percent, and the bond matures after…

A: Yield-to-Maturity refers to return rate that a bond will effectively generate each year if bond is…

Q: A 15-year bond with a face value of $1,000 currently sells for $850. Which of the following…

A: The method of calculating a bond's present value of future cash flows, which takes into account both…

Q: A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 9%, and…

A: Yield to maturity (YTM) is the effective rate of return or the current yield that is expected to be…

Q: A bond has a par value of $1,000, a time to maturity of 15 years, and a coupon rate of 7.80% with…

A: A bond is a kind of debt security issued by the government and private companies for raising funds…

Q: A bond has 6 years remaining to maturity, pays annual coupons (yesterday) of $7.4, and has a face…

A: To calculate the return on the bond if held for one year, we need to consider both the coupon…

Q: A bond that matures in 10 years sells for $985. The bond has a face value of $1000 and a 7% annual…

A: 1. Bond's current yield=Annual interestCurrent bond price=$1,000×7%$985=7.1066%

Q: An investor buys a 4.7% annual payment bond with 8 years to maturity. The bond is priced at a yield…

A: The sensitivity of a bond's whole price (including accrued interest) to changes in the bond's…

Q: A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 9%, and…

A: FV = $1,000 Coupon Rate = 9% N = 10-1 = 9 YTM = 9% Using Financial Calculator : PV = $1,000.