Five years ago bought 8% coupon bond for $975You sold it today for $1,000. Find ROR if(i) All coupons immediately spent(ii) All coupons reinvested at 1% p.a.(iii) All coupons reinvested at 8.64% p.a.
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Five years ago bought 8% coupon bond for $975
You sold it today for $1,000. Find ROR if
(i) All coupons immediately spent
(ii) All coupons reinvested at 1% p.a.
(iii) All coupons reinvested at 8.64% p.a.
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- 3. Assume you purchased a bond for $9,186. The bond pays $300 interest every six months. You sell the bond after 18 months for $10,000. Calculate the following: a. Income. b. Capital gain (or loss). c. Total return in dollars and as a percentage of the original investment. Review Only Click the icon to see the Worked Solution. a. The current income is $ (Round to the nearest dollar.) b. The capital gain (or loss) is $ (Enter a loss as a negative number and round to the nearest dollar.) c. The total return in dollars is $ (Round to the nearest dollar.) The total return as a percentage of the original investment is %. (Enter as a percentage and round to two decimal places.)Find the total proceeds (in $) from the sale of 20 bonds with a coupon rate of 8.75 and a current price of 96.575. (Round your answer to the nearest cent.) The commission charge is $4.00 per bond. The date of the transaction is 145 days since the last interest payment. 2$ Need Helln? Read It Watch I Master ltKrystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?
- An investor purchased a bond 45 days ago for $985. He received $15 in interest and sold the bond for $980. What is the holding-period return on his investment? A. 1.92% B. 1.02% C. 0.50% D. 0.01%Need answer the financial accounting% earned by an investor in a bond that was purchased for $944, has an annual coupon The nominal rate of return is of 5%, and was sold at the end of the year for $1036? Assume the face value of the bond is $1.000. A Moving to another question will save this response. « > Esc F1 DII F2 F3 F4 ES F6 @ #3 2$ 1 3 4 5 %23
- ✩ Question Completion Status: 1 3 2 4 Question 5 5 Click Submit to complete this assessment. Calculate values out to at least 6 decimal places before converting to percentage terms. Sandeep Singh purchased Alltech's 10-year, 4% bonds at a par 2 years ago. He notes the price has changed to 101.40 and he calculates the change is yield as: O A. 2.10%. OB. 0.20% O C.0.17%. A Click Submit to complete this assessment. QAn investor just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 5 percent with interest being paid semiannually. If the investor expects to earn an 8 percent rate of return on this bond, how much should she pay for it? A. $950.75 OB.$1,003.42 OC. $875.38 OD. $1,122.87 E.$796.15Don't give answer in image
- aa.2 Assumes Venture Healthcare sold bonds that have a ten-year maturity, a 12 percent coupon rate with annual payments, and a $1,000 par value. What would be the bonds value? Hint: Watch the Homework Hint video to figure out how to calculate this using Excel. Choice: $750 Choice: $1,000 Choice: $1,500 Choice: $2,000Solve these general accounting issue please provide correct solutionThe Saleemi Corporation's $1,000 bonds pay 6 percent interest annually and have 15 years until maturity. You can purchase the bond for $1,155. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? Question content area bottom Part 1 a. The yield to maturity on the Saleemi bonds is enter your response here%.