Suppose you just purchased a 8 year, $1,000 par value bond. The coupon rate on this bond is 7% annually, with interest being paid semi-annually. If you expect to earn a 11% rate of return on this bond, how much did you pay for it? (Round your answer to two decimal point)
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- You purchased a bond for 1,100. The bond has a coupon rate of 9 percent, which is paid semiannually. It matures in 17 years and has a par value of 1,000. What is your expected rate of return. How can i solve this with a financial calculator?Suppose that you buy a TIPS (inflation - indexed) bond with a 2- year maturity and a (real) coupon of 4.5% paid annually. If you buy the bond at its face value of $1,000, and the inflation rate is 8.75% in each year. What will be your cash flow in year 1 ?Suppose that for a price of $960 you purchase a 7-year Treasury bond that has a face value of $1,000 and a coupon rate of 4%. If you sell the bond one year later for $1,120, what was your rate of return for that one-year holding period? The rate of return for the one-year holding period was %. (Round your response to one decimal place.)
- Suppose you are deciding whether to buy a particular bond. If you buy the bond and hold it for 9 years , then at that time you will receive a payment of $8,981. If the interest rate is 4 percent, then the present value is....Suppose a bond is priced at $1108, has 18 years remaining until maturity, and has a 8% coupon, paid monthly. What is the amount of the next interest payment (in $ dollars)? $__________.With an example of a $1,000 bond making $100 annual payments, when the interest rate is 8%. Would there be a point (length to maturity) where you would prefer to hold a perpetuity paying $100/year over a bond with a $100 payment? Stated another way: If you had two investments to choose from, one a perpetuity that pays $100/year forever, or the other, a bond that pays interest of $100/year for 30 years, then pays back the $1000 principal, which one would you choose? You can use calculations, etc . if you want, to explain your decision!
- Suppose that you just bought a four-year $1,000 coupon bond with a coupon rate of 5.2% when the market interest rate is 5.2%. You sell the bond one year later after the market interest rate falls to 3.2%. The rate of return earned on the bond during the year was%. (Round your response to two decimal places.)you have just purchased a 15 year, 1000 par value bond. the coupon rate on this bond is nine percent annually, with interest being paid each six months. if you expect to earn a 12 percent market rate of return on this bond, how much did you pay for it?You have just paid $1,135.90 for a bond, which has 10 years before it, matures. It pays interest every six months. If you require an 8 percent return from this bond, what is the coupon rate on this bond? Par value is $1000.
- You buy a bond that pays annual interest payments of 7% of the bond’s face value of $1000. You initially pay $950 for the bond. You receive an annual interest payment after one year, then sell the bond for $880. What is your total rate of return on the investment, expressed as a percentage of the purchase price?Exactly 3 years ago, you bought a bond for $925. You just received your 6th coupon payment of $30, and you then immediately sold the bond for $870. What was your realized yield on this investment, stated as an effective annual rate (EAR)?Suppose you buy a bond with a coupon of 6.6 percent today for $1,110. The bond has 7 years to maturity. Assume interest payments are reinvested at the original YTM a. What rate of return do you expect to earn on your investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Rate of return b. Two years from now, the YTM on your bond has increased by 2 percent, and you decide to sell. What price will your bond sell for? |(Do not round intermediate calculations. Round your answer to 2 decimal places.) Price