ou just purchased a 3% coupon bond that makes semi annual payments with 20 years left to maturity and a par value of 100$. The current YTM of the bond is 2.8% in 6 months after receiving the next coupon you decide to sell the bond and its YTM decreased to 2.6%. Calculate capital gains for loss. Calculate gain/loss on bond, current yield and total return on bond for 6 months. step by step pl

Q: How much would be your total yield if you sell this bond today?

A: Price of the bond is the PV of all future coupons and par value discounted at the YTM. This bond is…

Q: You have purchased a bond for $973.02. The bond has a coupon rate of 6.4%, pays interest annually,…

A: Given: Bond price = $973.02 Coupon rate = 6.4% Years =4 Face value = $1,000

Q: You bought a 20-year bond that has a coupon rate of 8 percent, pays coupons annually, and sells at a…

A: PMT = 8% of 1000 = 80 FV = 1000 rate = 6.5% N = 19 use PV function in Excel

Q: Bond valuation​) At the beginning of the​ year, you bought a ​$1,000 par value corporate bond with…

A: Coupon = 0.16 * 1,000 = 160Price = Coupon * [ 1-1/(1+ 0.15)^14] / 0.15 + 1,000 / (1 + 0.15)^14= 160…

Q: You have just purchased a bond with the following characteristics:  $1,000 face value, 6% annual…

A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve…

Q: An investor invested a one-year maturity zero coupon rate bond 60 days ago by paying 965 USD from…

A: In a typical sale pruchase transaction of a bond, we need to find the return from the investment.

Q: Compute the price of the following bonds:   Bond A: Coupon bond, 4% coupon paid semi-annually,…

A: The question is based on the valuation of bond. The price of bond is calculated as present value…

Q: You have purchased a 14 year $1000 per value bond. The annual coupon rate on the bond is 9.7% paid…

A: d. 802. 67Explanation:Step 1: Calculate the present value of the annuity (coupon payments) using the…

Q: In January 2008, you purchased a XYZ bond with 9 years until maturity. The bond has an annual coupon…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: An attorney has recently contacted you for help in determining the value of one of her client’s…

A: Given: Face value =$1000 Time to maturity =7 years Zero coupon bond YTM = 7.6% compounded annually…

Q: ou are interested in purchasing a bond from ExAm Solutions. The bond had a 40 year maturity when it…

A: Given information: Years to maturity : 30 Face value : $1000 Coupon rate : 8% Current price : $950

Q: please mannully compute : Two years ago, you bought a 10-year, 6% annual coupon payment bond when…

A: In case the reinvestment and yield both the identical(9% in this case). Price of bond is given by  P…

Q: 4 years ago, you purchased a corporate bond for R975.30. At the time, the bond had a YTM of 9.25%…

A: Given: Particulars Amount Present value (PV) $975.30 Years completed 4 Yield to…

Q: What is the percentage change in the price of this bond if the market yield falls to 3 percent from…

A: Price of the bond is the PV of all future coupons and par value discounted at the YTM. The price of…

Q: What is the price of a bond with the following features? S years to maturity, face value of $1000,…

A: Details given in the question are as follows: Face value = $1000 Time period = 5 years  Coupon rate…

Q: Yesterday you paid $1000 for a 6% coupon, $1000 face value 5-year bond. It is callable at the end…

A: Bond price is given by  P = I(1-(1+r)-p)/p + F/(1+r)p Where ,  F = face value = 1000 r = discount…

Q: A 7% coupon bond that makes semiannual payments has 12 years to maturity. Assume you purchased this…

A: Current yield refers to the rate of interest that is to be paid on the value of the bond prevailing…

Q: You buy a 6 year bond with an annual 5% coupon at par value, $1000. If the yield to maturity at the…

A: Solution: Bond value is the present value of the cash inflows receivable from the bond for the…

Q: Suppose the discount rate is 10%. You bought a 10-year, 8% coupon bond with 7 years after it is…

A: The coupon rate indicates the interest rate on the bound. The period payment is determined using the…

Q: Calculate the value of a bond that matures in 12 years a par value of $1,000. The coupon interest…

A: Par value (FV) = $ 1000 Coupon rate = 8% Coupon amount (C) = 1000*0.08 = $ 80 Years to maturity (n)…

Q: Accrued interest. You are the holder of a bond with a face value of $1,000, a coupon of 5%, a…

A: Price of a bond with accrued interest is called 'dirty price' And price of a bond without accrued…

Q: 4 years ago, you purchased a corporate bond for R975.30. At the time, the bond had a YTM of 9.25%…

A: Purchase price of the bond (PP) = 975.30 YTM (r) = 0.0925 Maturity period (n) = 8 Years Annual…

Q: You bought a 16-year, 03.00% semi-annual coupon bond today and the current market rate of return is…

A: Bond price will be the aggregate of present value of all coupon payments and present value of face…

Q: An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 10.50% annual…

A: A debt security that allows its issuer to raise funds from the public is regarded a bond. It obliges…

Q: You want to find the value of a corporate bond with an annual coupon rate of 3%, making semi-annual…

A: Par value of bond (FV) = $1000 Coupon rate = 3% Semi annual coupon amount (C) = 1000*0.03/2 = $15…

Q: You are purchasing a 20-year bond that matures in 6 years. The bond has a par value of $5,000,…

A: Yield to Maturity shows the total returns earned from the security if kept till maturity. To…

Q: Calculate the value of a $1,000​-par-value bond paying quarterly interest at an annual coupon…

A: Coupon payment (C) = 11% / 4 = 2.75%Face value (F) = $1,000r= 2.75%t= 14*4 = 56 payments.

Q: You have a $1000 bond at 5% (coupon rate) that matures in 7 years and pays interest annually. You…

A: A bond is a kind of debt security issued by the government and private companies to the public for…

Q: You have a bond that has a Face Value of $1,000 and coupon rate of 4.7% paid semi-annually and…

A: The face value of the bond is $1,000.The coupon rate is 4.7%.The YTM is 4.8%.The maturity is 9 years…

Q: An investor invested a one-year maturity zero coupon rate bond 90 days ago by paying 965 USD from…

A: A zero-coupon bond is a type of bond that trades at price lower than the par value. At the maturity…

Q: You bought 2 0 year bonds which has a total Face Value of 5 , 0 0 0 , 0 0 0 and has a coupon rate of…

A: Bond yield refers to the rate of return at which bond generates the income from the bond.It has an…

Q: Your company wants to raise $8.5 million by issuing 10-year zero-coupon bonds. If the yield to…

A: Information Provided: Bond current value = $8,500,000 Yield to maturity = 5% Period of bond = 10…

Q: Find 11-month interest rate if the price of 5% bond maturing in 5 month is $99 and the price of 8%…

A: Yield to maturity is the rate of return realized on bond when bond is held till maturity of bond…

Q: Phil bought Bond A one year ago for $1,000. Currently the bond sells for $1,210 and has 10 years…

A: Rate of return for the bond over the past one year = ((Price today - Price 1 year ago)+Annual…

Q: You purchase a 6% $1,000 bond with a term of 5 years and reinvest all interest payments. If interest…

A: Bond valuation:Bond valuation is the process of determining the fair market price of a bond, which…

Q: 3. You have the opportunity to purchase a bond from a secondary market. The face value of the bond…

A: Bond price is the present value of all future cash flows from the bond such as coupons and par…

Q: of 5%. Face value of the corporate bond Php. 1,500. can you compute the following? a. Annual…

A: The given problem can be solved using PV function in excel. PV function will compute present value…

Q: You purchased a bond for 725. The bond has a coupon rate of 8 percent, which is paid semiannually.…

A: Expected rate of return is Yield to maturity.   Data given: ( Assumed all figures are in $) i) Face…

Q: a. You purchased a new issue GE Corp bond. The bond has a face value of $100, coupon interest rate…

A: The bond that has a coupon rate than the market interest rate is issued at a premium because the…

Q: 1. How to calculate the value of a 6 year 2% coupon bond with semiannual payments, 1000 par.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Today, you just paid $924.22 to buy a semiannual bond with 6 years to maturity. This bond carries 4%…

A: Bond's Yield or YTM (yield-to-maturity) implies the annual return that potential bond investor can…