On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.325%. The purchase price was 89.875, and the commission was $9 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) = 10.4 % (b) What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) =____$????? (c)If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.) = $9,630.63
On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.325%. The purchase price was 89.875, and the commission was $9 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) = 10.4 % (b) What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) =____$????? (c)If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.) = $9,630.63
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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On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.325%. The purchase price was 89.875, and the commission was $9 per bond. Bonds from this particular company pay interest on February 1 and August 1.
(a) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) = 10.4 %
(b) What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) =____$?????
(c)If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.) = $9,630.63
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