Three years ago you purchased a 8% coupon bond that pays semiannual coupon payments for $965. What would be your bond equivalent yield if you sold the bond for current market price of $1,044? Your bond equivalent yield, if you sold the bond for current market price, is nothing%. (Round to two decimal places.)
Q: Three years ago you purchased a 10% coupon bond that pays semiannual coupon payments for $986. What…
A: Bond equivalent yield can be found by using the following formula:
Q: ou purchased a zero-coupon bond one year ago for $76.00. The market interest rate is now 9.0…
A: Zero coupon bonds are those bonds that do not pay any coupons.These bonds are issued at steep…
Q: You have a $1,000 face value bond. You know that it originally had a maturity of 14 years, one year…
A: Compound = Semiannually = 2Face Value = fv = $1000Time = t = 14 * 2 = 28Coupon Rate = 7.9 / 2 =…
Q: There is a bond with a coupon of 7.4 percent, six years to maturity, and a current price of…
A: DV01 (dollar value of 01 basis point) is a measure used in finance to calculate the price…
Q: Three years ago you purchased a 8% coupon bond that pays semiannual coupon payments for $967. What…
A: Yield earned by the bond is calculated by RATE function in excel, where the purchase price is…
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: A 3-month zero-coupon bond is selling for $99.5 and a 10-year zero-coupon bond is selling for $64.3.…
A: Data given: Selling price for 3-month Zero coupon bond=$99.5 Selling price for 10-year Zero coupon…
Q: You purchased a zero-coupon bond one year ago for $278.33. The market interest rate is now 8…
A: Data given:: Interest rate = 8% (compounding semiannually) Assumed Par value of bond = $1000…
Q: Four years ago, Lisa Stills bought six-year, 9.50 percent coupon bonds issued by the Fairways Corp.…
A: Given Information:Purchase price is 947.68 Current price is 877.08 Holding years is 4 Coupon rate is…
Q: You purchased a $1000 face value zero-coupon bond one year ago for $223.77. The market interest rate…
A: ParticularAmountFace Value (FV)1000Payment (PV)223.77Interest Rate (RATE)=6.43%/2=0.03215No. of…
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: You will be paying $8,600 a year In tultion expenses at the end of the next two years. Bonds…
A: The objective of the question is to calculate the present value and duration of the tuition…
Q: You purchase a bond with an invoice price of $1,145. The bond has a coupon rate of 10.9 percent,…
A: The coupon payment for the period is multiplied by the percentage of time since the previous coupon…
Q: What is the yield to maturity at a current market price of $876? Round your answer to two decimal…
A: Bond Par Value = $1,000 Time to Maturity = 4 years Coupon Rate = 10% Using the fomula:…
Q: 5 years ago, you purchased a corporate bond for $942. At the time, the bond had a YTM of 9% and 9…
A: Bonds are debt instruments issued by companies.The issuing company pays periodic interest or…
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: You purchase a bond with a coupon rate of 9.1 percent, a par value of $1,000, semiannual coupons,…
A: A bond is a borrowing security issued by the company to raise funds from the market by making an…
Q: Realized rate of return
A: Realised rate of return is the return % generated from the bond. This can be computed with the excel…
Q: You purchase a bond with a coupon rate of 6.8 percent, a par value $1,000, and a clean price of…
A: Bonds and other fixed-income securities are examples of debt instruments that provide the bondholder…
Q: You are purchasing a bond that currently sold for $1,085.36. it has the time-to-maturity of 12 years…
A: A bond is a kind of debt security issued by the government and private companies to the public for…
Q: You have a $1,000 face value bond. You know that it originally had a maturity of 15 years, one year…
A: Face value = $1,000Coupon rate = 6.6%YTM = 5.5%Original years to maturity = 15 years
Q: You just bought a newly issued bond which has a face value of $1,000 and pays its coupon once…
A: The Price of the Bond is the PV of Coupons and Par value discounted at YTM. We can use the formula…
Q: Five years ago you purchasedan 8% coupon bond for $975. Today you sold the bond for $1,000. What is…
A: a. Calculate the rate of return as follows: rate of return=Sale price of bond+Coupon…
Q: 4 years ago you purchased a 12 year maturity, 3.3% coupon annual pay bond at a price of $90 per $100…
A: The time or period between the purchase of a security and the selling of a security is referred to…
Q: You have just been offered a $1,000 par value bond for $1,350.95. The coupon rate is 13 percent,…
A: The monthly interest payments that a bond issuer makes to the bondholder are referred to as coupon…
Q: Its years ago, you boughta 10-year, 6% turity was 8%. Right after you purchased this bond, the…
A: Price of bond is present value of coupon payment plus present value of par value.
Q: Two years ago, you bought a 10-year, 6% annual coupon payr was 8%. Right after you purchased this…
A: A capital gain or loss refers to the situation when the difference between the earnings from the…
Q: Mar’s Corporation bonds with par of $1,000 mature in 15 years and pays 6.5% coupon interest. The…
A: Market price of bond can be defined as that price at which bond can be purchased or sold in the bond…
Q: Three years ago you purchased a 8 % coupon bond that pays semiannual coupon payments for $987. What…
A: Bonds refer to instruments that are issued by companies to raise debt capital from their investors.…
Q: You purchase a bond with a coupon rate of 8.9 percent, a par value of $1,000, semiannual coupons,…
A: We can determine the invoice price using the formula below:
Q: You have just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 6%, with…
A: A bond is a financial contract between an issuer (the bond's seller) and a holder (the bond's…
Q: Exactly 7 years ago, you bought a $1,000 par value paying 9.0% coupons on a semiannual basis for…
A: Here,Purchase Price of Bond is $1,076.95Coupon Rate is 9%Payment Frequency (m) is Semi Annual i.e…
Q: The rate of return earned on the bond during the year was %. (Round your response to two decimal…
A: Bonds are fixed-income securities representing a loan made by an investor to a borrower, typically a…
Q: Suppose you purchase a 9-year AAA-rated Swiss bond for par that is paying an annual coupon of 6…
A: Maturity =9 yearsFace value = SF1000Spot rate = SF1.40/ $1 (Per Australian dollar)Yield increases =…
Q: You purchase a bond with a coupon rate of 6.8 percent, a par value $1,000, and a clean price of…
A: Invoice price of bonds is also known as the dirty price of bond. If we add the accrued interest…
Q: Suppose that today’s date is April 15. A bond with a 7% coupon paid semiannually every January 15…
A: First we need to calculate accrued interest on bond because last interest paid on 15 January. There…
Q: Jorge Cabrera paid $1,100 for a 15-year bond 10 years ago. The bond pays a coupon of 8 percent…
A: We will be using Excel function, =RATE to find realized yield. =RATE(nper,pmt,pv,FV,type,guess)
Q: 3. You bought a bond (par=$1,000) three years ago for $1,040. The bond is now selling for $990. It…
A: The realized return from the means refers to the return received on a bond during the holding…
Q: A 1,000 bond with 6% semiannual coupons is redeemable at 1,050 in 20 years. The bond is selling for…
A: Bonds are is a debt instruments issued by a corporation or government to raise money. The bond…
Q: Jeremy Kohn is planning to invest in a 6-year bond that pays a 12 percent coupon. The current market…
A: Compound = semiannual = 2 Time = t = 6 * 2 = 12 semiannual Coupon rate = 12 / 2 = 6% Interest rate =…
Q: Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds…
A: The yield to maturity of a bond is the total return anticipated on a bond if it is held until its…
Q: A 3-month zero - coupon bond is selling for $99.7 and a 10-year zero - coupon bon is selling for…
A: Spread is to be calculated by taking the difference between two prices, yields or rates which…
Q: Five years ago, you purchased a $1,000 par value corporate bond with an interest rate of 5 percent.…
A: A bond is a kind of debt security issued by the government and private companies to the public for…
Q: You purchased a zero coupon bond one year ago for $120.36. The bond has a par value of $1,000 and…
A: Compound = Semiannually = 2Beginning Price of Bond = bp = $120.36Face Value = fv = $1000Interest…
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- Three years ago you purchased a 8% coupon bond that pays semiannual coupon payments for $967. What would be your bond equivalent yield if you sold the bond for current market price of $1,047? Your bond equivalent yield, if you sold the bond for current market price, is%. (Round to two decimal places.)Three years ago you purchased a 9% coupon bond that pays semiannual coupon payments for $962. What would be your bond equivalent yield if you sold the bond for current market price of $1,0447 Your bond equivalent yield, if you sold the bond for current market price, is COLD %. (Round to two decimal places.)Three years ago you purchased a 8% coupon bond that pays semiannual coupon payments for $987. What would be your bond equivalent yield if you sold the bond for current market price of $1,057?
- You bought a six-year bond issued by Oriole Corp. four years ago. At that time, you paid $972.33 for the bond. The bond pays a coupon rate of 7.975 percent, and coupon payments are made semiannually. Currently, the bond is priced at $1,034.56, What yield can you expect to earn on this bond if you sell it today? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual yield %You purchased a $1000 face value zero-coupon bond one year ago for $260.3. The market interest rate is now 7.36 percent. If the bond had 19 years to maturity when you originally purchased it, what was your total return for the past year?Assume semiannual compounding. Answer as a percentage to two decimals (if you get -0.0435, you should answer -4.35).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.)
- Exactly 7 years ago, you bought a $1,000 par value paying 9.0% coupons on a semiannual basis for $1076.95. Over the 7 years you reinvested the coupon payments and received a total of $63.26. You believe you will be able to sell the bond today for $1,021.50. What is the total annual return of your bond? Submit your final answer as a percentage rounded to 2 decimals. The answer is 6.76%, I just don't know how to get it.Suppose that today’s date is April 15. A bond with a 8% coupon paid semiannually every January 15 and July 15 is quoted as selling at an ask price of 101.0938 percent of par. If you buy the bond from a dealer today, what price will you pay for it? (Round your answer to 2 decimal places.) invoice price?You buy an 8.6% coupon, paid annually, 5-year maturity bond for $960. A year later, the bond price is $1,070. Face value of the bond is $1,000. a. What is the yield to maturity on the bond today? (Round your answer to 2 decimal places.) % b. What is the yield to maturity on the bond in one year? ( Round your answer to 2 decimal places.) c. What is your rate of return over the year? (Round your answer to 2 decimal places.)
- Assume that a corporate bond has a par value of $1,000 and pays coupon payments semiannually. What is the semiannual coupon payment for this bond if the coupon rate is 6.66%? (Round your final answer to two decimal places.)A zero-coupon bond that will pay $1,040 in 11 years is selling today for $440.81. What interest rate does the bond offer? (Round your answer to 2 decimal places.)You purchase a U.S. 8.14%, 30-year bond with a face value of $100 selling at par. 1. What is the yield to maturity on the bond? 2. What is the duration of the bond? 3. If you sold the bond at the end of 1 year what price would you receive for it if its yield to maturity increased to 10 percent? 4. What cash flow yield would you earn on the bond if sold it at the end of 10 years at a yield to maturity of 10 percent? 5. What realized compound yield (i.e. RCY) would your earn on the bond over 10 years if you were able to reinvest the coupons at 8 percent per year? Assume the bond can be sold at the end of 10 years at a yield to maturity of 8 percent?