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: You purchased a 5-year annual-interest coupon bond year agoIts coupon interest rate was 6%, and its…

A: The holding period return on a bond is the total return earned by an investor over the duration of…

Q: determine the current market value of the bond.

A: Bond valuation is a method of finding the fair value of the bond. Fair value means the present…

Q: ou purchased a zero-coupon bond one year ago for $76.00. The market interest rate is now 9.0…

A: Zero coupon bonds are those bonds that do not pay any coupons.These bonds are issued at steep…

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: 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: You bought a 20-year bond that has a coupon rate of 8 percent, pays coupons annually, and sells at a…

A: PMT = 8% of 1000 = 80 FV = 1000 rate = 6.5% N = 19 use PV function in Excel

Q: Calculate the (annual) rate of return realized on your investment

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

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 purchased a zero-coupon bond one year ago for $278.33. The market interest rate is now 8…

A: Data given:: Interest rate = 8% (compounding semiannually) Assumed Par value of bond = $1000…

Q: You purchased a $1000 face value zero-coupon bond one year ago for $223.77. The market interest rate…

A: ParticularAmountFace Value (FV)1000Payment (PV)223.77Interest Rate (RATE)=6.43%/2=0.03215No. of…

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: please mannully compute : Two years ago, you bought a 10-year, 6% annual coupon payment bond when…

A: In case the reinvestment and yield both the identical(9% in this case). Price of bond is given by  P…

Q: You purchased a 15-year, 4.8 percent coupon bond that was priced at 102.594% of par TWO years ago.…

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

Q: You just got an offer for a bond issued by Coala Corporation. The bond pays semi-annual coupons with…

A: Using excel PV function Assuming par value to be 1000

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: Six years ago, you paid $569.50 to purchase a zero-coupon bond with face value $1000 maturity of 25…

A: Bonds refer to instruments that companies issue to raise debt capital from non-traditional sources.…

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: A perpetual bond has face value $1,000, and coupon 8%. You bought this bond when the interest rates…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

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: You purchased a $1,000 par value bond one year ago at a price of $1050 when it was issued. At the…

A: Bond is the security that provides coupon payment to the bondholder over the maturity period. The…

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: ou just purchased a 3% coupon bond that makes semi annual payments with 20 years left to maturity…

A: Following formulas are used.   Capital gain in dollar=Selling price -Purchase priceCapital gain in…

Q: You just bought a newly issued bond which has a face value of $1,000 and pays its coupon once…

A: The Price of the Bond is the PV of Coupons and Par value discounted at YTM. We can use the formula…

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: Two years ago, you bought a 10-year, 6% annual coupon payr was 8%. Right after you purchased this…

A: A capital gain or loss refers to the situation when the difference between the earnings from the…

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: You hold two bonds. You own a $1,000 face value bond from Company B that has 5.2% coupons paid once…

A: Yield to maturity is rate of return realized on the bond when bond is held till maturity and all…

Q: ABC Corp. issued a 25-year maturity bond in 1990 with 6.5 percent coupon paid semi-annually. The…

A: The idea of a time value of money (TVM) holds that a quantity of income is worth higher right now…

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: 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: You purchased a coupon bond that had a maturity of 20 years. The annual coupon interest rate was 10%…

A: Bond valuation includes the determination of the present value of a bond's future cash flows, which…

Q: You purchased an annual-interest coupon bond one year ago with 7 years remaining to maturity at the…

A: Bond not only generates coupon cash stream, but also capital gain/loss for the investor. This total…

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…

Q: you bought a 30-year bonds many years ago. The bond has par value of $ 1,000 and coupon rate of 12%,…

A: Here,Total Time Period is Bond is 30 yearsCoupon Rate of Bond is 12%YTM of the Bond is 10%Par Value…

Q: You purchased a zero coupon bond one year ago for $120.36. The bond has a par value of $1,000 and…

A: Compound = Semiannually = 2Beginning Price of Bond = bp = $120.36Face Value  = fv = $1000Interest…