Information about three securities appears next. Stock 1 Stock 2 Bond 1 Beginning-of-Year Price $ 44.20 Stock 1 Stock 2 Bond 1 $ 2.95 $ 1,190 End-of-Year Price $ 48.45 $ 3.18 $ 1,218 a. Assuming interest and dividends are paid annually, calculate the annual holding period return on each security. Note: Round your answers to 1 decimal place. Answer is not complete. Annual Holding Period Return 16.9 % 7.8 % % Interest/Dividend Paid $ 3.20 $.00 $ 58.00

Information about three securities appears next. Stock 1 Stock 2 Bond 1 Beginning-of-Year Price $ 44.20 Stock 1 Stock 2 Bond 1 $ 2.95 $ 1,190 End-of-Year Price $ 48.45 $ 3.18 $ 1,218 a. Assuming interest and dividends are paid annually, calculate the annual holding period return on each security. Note: Round your answers to 1 decimal place. Answer is not complete. Annual Holding Period Return 16.9 % 7.8 % % Interest/Dividend Paid $ 3.20 $.00 $ 58.00

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Suppose the following bond quote for IOU Corporation appears in the financial page of today's newspaper. Assume the bond has a face value of 1,000 and the current date is April 15, 2019. [[Company...., EST Vol], [( Ticker), Coupon,Maturity, Last Price, Last Yield, (000s)], [IOU, 7.8, Apr 15,, 104.661, ??, 1, 845], [(IOU),, 2032,,,]] a. What is the yield to maturity of the bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the current yield? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g 32.16.) [[,], [a., YTM, % I
6
Applying Time Value of Money Concepts Complete the missing information in the table below. Assume that all bonds pay interest semiannually. Do not use negative signs with answer. Round percentages to one decimal place (ex. 0.0345 = 3.5%). Round all other values to the nearest whole number. Annual Yield Years to Coupon Issue Maturity Rate Face value Proceeds Firm 1 8.00% 15 7.00% $500,000 $ Firm 2 3.00% 10 0.00% $ $705,347 Firm 3 6.50% 5.00% $500,000 $458,353 Firm 4 % 12 3.50% $1,000,000 $1,114,103 Firm 5 0.80% 20 2.00% $700,000 $
The Wall Street Journal reports that the rate on 3-year Treasury securities is 1.50 percent and the rate on 5- year Treasury securities is 2.45 percent. According to the unbiased expectations theory, what does the market expect the 2-year Treasury rate to be three years from today, E(3/2)? (Do not round intermediate calculations and round your answer to 2 decimal places.) Treasury rate %
A listed company has hired you to evaluate its recent issue of 2-year TIPS (Treasury Inflation-Protected Securities) with a semi-annual coupon payment clause and requires you to calculate the accrued principal and the coupon payment for the last 6 months. The information provided by the company is as follows: Par Value Coupon Rate 1000 1% First 6 months inflation 4% Second 6 months inflation 1% Third 6 months inflation 2% Fourth 6 months inflation 1% Note: Round the final values to two decimals.
Consider an investor who, on January 1, 2XX1, purchases a TIPS bond with an original principal of $174,000, an 9 percent annual coupon rate, and 17 years to maturity.If the semiannual inflation rate during the first six months is 0.5 percent and the semiannual inflation rate for the second six-month period is 1.7 percent, calculate the coupon payment to the investor for the second six-month period. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
BlueLtd. Issued a $1,164,000, 10-year bond dated January 1, 2020. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Blue followed IFRS. Using 1 factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the tactor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITYOF 1 (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answers to 0 decimal places, e.g. 5,275.) Proceeds from sale of bond : on bond Prepare the journal entries for above transactions. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the…
What is the Macaulay duration of a bond with a coupon of 6.0 percent, twelve years to maturity, and a current price of $1,062.40? What is the modified duration? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Macaulay Modified Duration 8.989 Years 8.537 Years
(Related to Checkpoint 9.2) (Yield to maturity) Abner Corporation's bonds mature in 19 years and pay 13 percent interest annually. If you purchase the bonds for $1,225, what is your yield to maturity? Question content area bottom Part 1 Your yield to maturity on the Abner bonds is enter your response here%. (Round to two decimal places.)
On January 1, 2021, Concord Corp. issued five-year bonds with a face value of $370.000 and a coupon interest rate of 6%, with interest payable semi-annually. Record the proceeds from the sale of the bonds if the market interest rate was 7%. See below for present value tables. (Do not use & signs or commas in your answer. Do not round intermediary calculations. Only round final answers to 2 decimal places ex: 5.25) TABLE Present Value of $1 PV (n) Periods TABLE 2 8 9 1 1 2 9T5 VO 5 6 Present Value of an Annuity of $1 PV (n) Periods 1% 1 (1 + i)" 2% 2.5% 3-5% 4% 4-5% 7% 8% 9% 10% 1.5% 3% 6% 0.99010 0.98522 0.98039 0.97561 0.97087 0.96618 0.96154 0.95694 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.98030 0.97066 0.96117 0.95181 0.94260 0.93351 0.92456 0.91573 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.97059 0.95632 0.94232 0.92860 0.91514 0.90194 0.88900 0.87630 0.86384 0.83962 0.81630 0.79383 0.77218 0.75131 0.96098 0.94218 0.92385 0.90595 0.88849 0.87144 0.85480 0.83856…
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You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2019. The bonds have a par value of $2,000 and semiannual coupons. Company (Ticker) Xenon, Inc. (XIC) Kenny Corp. (KС) Williams Co. (WICO) Last Price 94.267 EST $ Vol (000's) 57,369 48,948 43,809 Last Yield Coupon 6.10 719 Maturity Jan 15, 2032 Jan 15, 2029 Jan 15, 2036 7? 6.16 6.98 7? ?? 94.805 What is the yield to maturity for the bond issued by Xenon, Inc.? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Yield to maturity

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