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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Similar questions

A P1,000, 6% bonds pay dividend semi-annually and will be redeemed at 110% on July 1, 1975. It is bough on July 1, 1972 to yield (4%, m=2). Find the price and form a table showing amortization of the premium.
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
D6) it is April 19th. The quoted price of a treasury bond with an actual/365-day count and a 2% coupon (semi-annual)is 105-18. It has a face value of 100 and pays coupons on March 1 and September 1. What, to two decimal place accuracy, is the cash price?
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 company has issued some 6% bonds at par value of OMR 75, the shares can be redeemed at the end of 6 years. Investors now require a redemption yield of 16%. Find the present value of interest received on bond at the end of fourth year. ( consider three place after decimal in your calculation) a)OMR 41,40 b)OMR 58.188 c)OMR 16.788 d)OMR 43.15
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.)

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