Janice V. bought a 5% $1000 twenty-year bond for $925. She received a semiannual dividend for 8 years, then sold it immediately after the 16th dividend for $800. What rate of return did she make (a) per semiannual period, and (b) per year (nominal)?

Q: In 2016 Beth purchased a 10-year, 3.20% p.a. semi-annual paying coupon bond with a Face Value (FV)…

A: If beth decides to sell the long-term bond, then here are some advantages of short-term debt…

Q: $30 per share, holds the shares for 5 years, and sells them for $65. (Hint: Find the holding period…

A:

Q: 8. Frank invests $1500 in a bond that pays 6.5% per year compounded annually. How much money will he…

A: Investment amount = $ 1500 Annual interest rate = 6.5% Period = 6 Years

Q: xt five years. If the annual interest rate stays constant at 7%, what is the value of these payments…

A: Annuity is a series of equal payments at equal interval for a specified period. Ordinary Annuity…

Q: Olga owns two investments, A and B, that have a combined total value of $28,500.00. Investment A is…

A: Step 1: Given Value for Calculation Total Present value = tpv = $28,500 Investment AFuture Value =…

Q: coupon Joseph owns investment A and 1 bond B. The total value of his holdings is $2,770.00. Bond B…

A: Coupon rate = 8.08%/100 = 0.0808 in decimalsPar value = 1000YTM = 7.39%/100 = 0.0739 in…

Q: Someone in the 36 percent tax bracket can earn 7 percent annually on her investments in a tax-exempt…

A: Here,One Time Investment is $18,000Tax Rate is 36%Interest Rate is 7%

Q: Tristan Sandino sold a 4.85%, $1,000 bond 60 days after he had received the last interest payment.…

A: 1. Identify the bond's annual interest payment:o The bond's face value (principal) is $1,000.o The…

Q: Jeremy purchased 100 shares of FB for $20 per share in September 2012 and sold them 5 years later at…

A: Present Value = pv = $20Time = t = 5 yearsFuture Value = fv = $95

Q: 6. Emily bought a $100 par value 5-year bond with 8% semiannual coupons at a purchase price of $92.…

A: It refers to the expected rate of return received from a bond purchased at the current market price…

Q: Dean Yeagley bought a $1,000 face value, 7% coupon, 15-year bond for $1,100.  Seven years after she…

A: Holding period yield: Holding period yield can be defined as the percentage return earned from…

Q: In 2016 Beth purchased a 10-year, 3.20% p.a. semi-annual paying coupon bond with a Face Value (FV)…

A: We will calculate the price of the bond with present value formula in excel. Just simply type =PV in…

Q: Mary Jenkins purchased a common share that currently pays an annual dividend of CAD 5.20 that is…

A: Current Dividend = d0 = CAD 5.20Interest Rate = r = 5%Growth Rate = g = 3%

Q: los owns investment A and 1 bond B. The total value of his holdings is $2,496.36. Investment A is…

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

Q: Chris buys an 11-year, $38,755.25, a zero-coupon bond with an annual YTM of 7.37%. If he sells the…

A: Given: Particulars Amount Years (NPER) 11 Current price (PV) 38755.25 YTM (Rate) 7.37%

Q: Mildred can purchase a municipal bond with a par (face) value of $1000 that will mature in 10 years.…

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: 00 for corporate bonds that have a par value of $10,000 and a coupon rate of 7.4 percent, payable…

A: Bonds are paid coupon interest payments each period and par value is paid on maturity of bond.

Q: In 2016 Beth purchased a 10-year, 3.20% p.a. semi-annual paying coupon bond with a Face Value (FV)…

A: Face value or maturity value of the bond (FV) = $2,000,000 Semiannual coupon amount (C) = $32,000…

Q: 14. Alicia owns two investments, A and B, that have a combined total value of $31,300. Investment A…

A: Calculate the amount of investment A (P A) by equating the total amount which is $24,800 with the…

Q: Abby Sane decided to buy corporate bonds instead of stock. She desired to have the fixed-interest…

A: Bond is a type of long term debt used by governments or corporations to raise loan.

Q: eBook Staci invested $1,200 five (5) years ago. Her investment paid 8.4 percent interest compounded…

A: Future value refers to the value of the current asset that will be present on some future date…

Q: Four years ago, Linda Stills bought six-year, 5.7 percent coupon bonds issued by the Cullumber Corp.…

A: Coupon rate = 5.7%Price of bond = $946.12Selling price = $891.30Face value = $1000Bond period = 4…

Q: The bonds were for a 20-year term, but at the time of purchase, there was 15 years remaining. The…

A: Time Value of MoneyThe time value of money is a fundamental concept in finance that refers to the…

Q: Caleb buys a(n) 10.07% corporate bond with a current yield of 6.89%. When he sells the bond one year…

A: Coupon Rate = 10.07%Current Year Current Yield = 6.89%Next Year Current Yield = 7.13%Assuming Face…

Q: Abby Sane decided to buy corporate bonds instead of stock. She desired to have the fixed-interest…

A: Bonds are debt securities issued by governments, municipalities, or corporations as a means of…

Q: John purchases a $600 bond that has 6 remaining semi-annual 7% coupon payments for $510. What would…

A: The Par Value of the Bond is $600 The remaining payments are 6 The coupon rate is 7% Price of the…

Q: Zander purchased a 20 year 11.5% bond at par 1 year ago. �Today, he sold the bond at 105% of par.…

A: Given the following:  Purchase price = $1,000  Selling price = 105% of par = $1,050  Coupon rate =…

Q: Fatima buys an 11-year, $314,530, a zero-coupon bond with an annual YTM of 1.74%. If she sells the…

A: Zero coupon bond will not pay any coupon throughout its life, hence the present value of the bond…

Q: Mathias purchases a 7-year CD for $5000 with 1.1% APR compounded monthly, and a 7-year bond for…

A: C=Annual amount received after 7 year P=Invested amount r= Rate n=Number of year T=compounded…

Q: Barbara buys 130 shares of DEM at $34.00 a share and 190 shares of GOP at $37.00 a share. She buys…

A: Your problem pertains to the domain of finance and investing, specifically addressing ideas like…

Q: John purchased a $20,000 20-year bond at a 2% dis- count. It pays semiannually at a rate of 4% per…

A: In case of bond interest is payable annually, semi annually as per initially agreed, but it is…

Q: Paul owns investment A and 1 bond B. The total value of his holdings is $6,450.43. Investment A is…

A: A bond refers to an instrument that provides the issuing organization access to debt capital from…

Q: John bought a bond with an 7.5% coupon rate for $1,080 and sold it one year later for $1,190. His…

A: The corporation and government can raise finance by issuing bonds. The borrower i.e bond issuer is…

Q: Amy Ross has $19,200 to invest today at 12% to pay a debt of $74,803. How many years will it take…

A: We should use the following formula A = P ( 1 + r )n A = Future value = 74,803 P = Present value =…

Q: Shane buys a 14-year, $150,500, zero-coupon bond with an annual YTM of 4.32%. If he sells the bond…

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: Four years earlier, Janice purchased a $1,000 face value corporate bond with a 6% annual coupon and…

A: Purchase price = Coupon Amount * PVAF ( Yield, Years ) + Face value * PVIF ( Yield, Years )

Q: A savvy investor paid $6,000 for a 20-year $10,000 mortgage bond that had a bond interest rate of 8%…

A: Current Price  $                                      6,000.00 Bond Price  $…