Five years ago, you purchased a corporate for 942.41. At the time, the bond had a YTM of 10% and 9 years left to maturity. Today, the YTM on your bond is 8%. with this information, calculate the realized rate of return on the bond knowing that you bought the bond five years ago, you sold the bond today, you never reinvested the coupons paid on the bond, and the coupon rate on the bond is (9%,2).

Q: Three years ago you purchased a 10% coupon bond that pays semiannual coupon payments for $986. What…

A: Bond equivalent yield can be found by using the following formula:

Q: 5. You have just purchased an outstanding 10-year bond with a par value of $1,000 for $1,145.68. Its…

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

Q: You have a $1,000 face value bond. You know that it originally had a maturity of 14 years, one year…

A: Compound = Semiannually = 2Face Value = fv = $1000Time = t = 14 * 2 = 28Coupon Rate = 7.9 / 2 =…

Q: Don't provide handwritten solution. You purchased a 5% coupon 10-year bond six years ago for…

A: Yield to Maturity (YTM): Yield to Maturity is the total return anticipated on a bond if it is held…

Q: to maturity. Today, the YTM on your bond is 6%. With this information, can you calculate the current…

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

Q: In the past, Farmer Felix bought a $1,000 face value, 5.0 percent coupon bond (interest paid…

A: Present value of annuity is computed as follows:-PV=A* wherePV= Present value of annuityA= periodic…

Q: Three years ago you purchased a 8% coupon bond that pays semiannual coupon payments for $967. What…

A: Yield earned by the bond is calculated by RATE function in excel, where the purchase price is…

Q: Me be Happy with calculation

A: 1) First, let's calculate the yield to maturity (YTM) of the original bond:    $1000 = $543 * (1 +…

Q: An investor invested a one-year maturity zero coupon rate bond 60days ago by paying 965 USD from…

A: In a typical sale purchase of a zero coupon bond, we need to quantify the rate of return.

Q: You are thinking about buying a 10-year bond that was issued 2 years ago.  The coupon rate is 5%…

A: In this question we need to compute the price you pay for the one bond or we can say we need to…

Q: $1,000 par value bond was issued 25 years ago at a 9.00 percent coupon rate, paid se urrently has 20…

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

Q: jorge cabrera paid $1,100 for a 15-year bond 10 years ago. the bond pays a coupon of 8 percent…

A: We will be using Excel function, =RATE to find realized yield. =RATE(nper,pmt,pv,FV,type,guess)

Q: You purchase a newly issued bond from Apple. The bond has a face value (F) of $1,000; coupon…

A: A bond is a debt instrument issued by a company that allows them to borrow a sum of money with the…

Q: 4 years ago, you purchased a corporate bond for R975.30. At the time, the bond had a YTM of 9.25%…

A: Given: Particulars Amount Present value (PV) $975.30 Years completed 4 Yield to…

Q: Suppose John purchased an annual coupon bond with a face value of $1000, a coupon rate of 8% and…

A: The bond price is the discounted value of all cash flows and the maturity value with the help of a…

Q: Yesterday you paid $1000 for a 6% coupon, $1000 face value 5-year bond. It is callable at the end…

A: Bond price is given by  P = I(1-(1+r)-p)/p + F/(1+r)p Where ,  F = face value = 1000 r = discount…

Q: Suppose you purchase a 29-year bond with 5.6% annual coupon. You hold the bond for 5 years and sell…

A: Bonds:An investor makes a loan to a borrower (usually a corporation or government) by purchasing a…

Q: c) A zero coupon bond is selling for $476. The bond has a face value of $1,000 and matures in 8…

A: A zero coupon bond pays only the maturity value. No interest/ coupon payment is paid on zero coupon…

Q: Suppose the discount rate is 10%. You bought a 10-year, 8% coupon bond with 7 years after it is…

A: The coupon rate indicates the interest rate on the bound. The period payment is determined using the…

Q: You purchased a coupon bond one year ago. The bond makes annual interest payments at a coupon rate…

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

Q: Realized rate of return

A: Realised rate of return is the return % generated from the bond. This can be computed with the excel…

Q: You are interested in purchasing a bond from ExAm Solutions. The bond had a 40 year maturity when it…

A: Total Time Period = 40 years Time Remaining (N) = 30 years or 120 quarters Face Value = 1000 Current…

Q: You buy an 8 percent, 25 year, 1000 par value floating rate bond in 1999. By the year 2004, rates on…

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

Q: 4 years ago, you purchased a corporate bond for R975.30. At the time, the bond had a YTM of 9.25%…

A: Purchase price of the bond (PP) = 975.30 YTM (r) = 0.0925 Maturity period (n) = 8 Years Annual…

Q: 2. Rick bought a 30-year bond when it was issued by Macroflex Corporation 8 years ago. The bond has…

A: The question is based on the concept of Bond Valuation. As per Bartleby guidelines we are allowed to…

Q: You buy an 8 percent, 25-year, $1,000 par value floating rate bond in 1999. By the year 2004, rates…

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

Q: A bond has a coupon rate of 5% and a 20 year maturity. In order to purchase this bond, an investor…

A: A bond's price and attractiveness to investors are influenced by various factors such as the coupon…

Q: Today, you just paid $924.22 to buy a semiannual bond with 6 years to maturity. This bond carries 4%…

A: To determine the yield to maturity, we first need to compute the coupon payment amount, number of…

Q: Five years ago you purchasedan 8% coupon bond for $975. Today you sold the bond for $1,000. What is…

A: a. Calculate the rate of return as follows: rate of return=Sale price of bond+Coupon…

Q: You have just been offered a $1,000 par value bond for $1,350.95. The coupon rate is 13 percent,…

A: The monthly interest payments that a bond issuer makes to the bondholder are referred to as coupon…

Q: Its years ago, you boughta 10-year, 6% turity was 8%. Right after you purchased this bond, the…

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

Q: (i) An investor buys a 12% coupon bond at a price of ¢10,500,000 on 1st January 2007. At 31st…

A: Price of Bond = 10,500,000 Selling Price = 11,125,000 Assuming Price of Bond = Face Value Coupon =…

Q: Three years ago you purchased a 8 % coupon bond that pays semiannual coupon payments for $987. What…

A: Bonds refer to instruments that are issued by companies to raise debt capital from their investors.…

Q: Tom bought a coupon bond a year ago, and it costed him $870. The bond has a par value of $1000 and a…

A: Bonds refer to the debt security that is issued for the purpose of raising capital from the external…

Q: Bill Bob paid $1,100 for a 15-year bond 10-years ago. The bond pays a coupon of 8 percent…

A: We will be using Excel function, =RATE to find realized yield.=RATE(nper,pmt,pv,FV,type,guess)

Q: Suppose your friend tells you that she recently purchased a 5-year $2,000.00 bond with a 9% coupon.…

A: The problem involves bonds specifically, government bonds. A  government bond is a debt security…

Q: Suppose that you invested in a twenty-year zero coupon bond with a face value of $1000. The bond…

A: Step 1:5. Determine the gain or loss:Capital loss = Original cost - Current market priceCapital loss…

Q: An investor invested a one-year maturity zero coupon rate bond 90 days ago by paying 965 USD from…

A: A zero-coupon bond is a type of bond that trades at price lower than the par value. At the maturity…

Q: Jorge Cabrera paid $1,100 for a 15-year bond 10 years ago. The bond pays a coupon of 8 percent…

A: We will be using Excel function, =RATE to find realized yield. =RATE(nper,pmt,pv,FV,type,guess)

Q: You bought a $1,000-face 10%-coupon bond that had five years of remaining maturity one year ago.…

A: The rate of return is the overall percentage return we get on the investment. This is the overall…

Q: Phil bought Bond A one year ago for $1,000. Currently the bond sells for $1,210 and has 10 years…

A: Rate of return for the bond over the past one year = ((Price today - Price 1 year ago)+Annual…