onsider a coupon bond with the following features: coupon rate = 4.5%, face value = £10,000, time to maturity = 5 years, yield to maturity (YTM) = 6%. Assume that after 1 year (after having received the first coupon payment), the investor who has purchased the bond decides to sell it and that similar bonds in the market yield a YTM of 7%. Showing all your calculations, calculate the rate of return for having invested in this bond Is the interest rate on the bond considered a good approximation of its rate of return? Why/why no

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Q: Suppose that a bond with an 8% coupon rate and semiannual coupons has a face value of $1,000, 10…

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Q: suppose that you have purchased a 3- year zero-coupon bond with face value of $1000 and a price…

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Q: rate of return of the bond? W

A: Bond price refers to the amount which an investor is willing to pay at the time of existence of…

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A: Given:

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Q: expected yield to maturity

A: Face value= $1000 rate of coupon=8% (8% of 1000=80) By the formula YTM= C+F-P÷nF+P÷2×100…

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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…