You own investment A and 10 bonds of bond B. The total value of your holdings is $12,185.28. Bond B has a coupon rate of18.82 percent, par value of $1000, YTM of 15.36 percent, 7 years until maturity, and semi-annual coupons with the next couponexpected in 6 months. Investment A is expected to pay $X per year for 12 years, has an expected return of 19.64 percent, and isexpected to make its first payment later today. What is X?Input instructions: Round your answer to the nearest dollar.59$

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Answered: You own investment A and 10 bonds of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 4P

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Please show your work. What is the value of a bond with a par value of $1,000, a coupon of $120 (semi- annually), and matures in 10 years? Assume a required rate of return ( YTM) of 7.02% a. $1,198.45 b. $ 2,401.56 c. $2,568.76 d. $ 2,205.54
Suppose that a 20-year 7% bond selling for $816 and held to maturity has reinvestment rate of 6%. Coupon is paid twice a year. Par value is $1,000. What is the annual total return?
The nominal rate of return is ______% earned by an investor in a bond that was purchased for $906, has an annual coupon of 4%, and was sold at the end of the year for $1045? Assume the face value of the bond is $1,000.
Assume that you purchase a 5-year $1,000 par value bond, with a 6% coupon, and a yield of 7%. Immediately after you purchase the bond, yields rise to 8% and remain at that level to maturity.Calculate the realized horizon yield if you hold the bond to maturity. Interest is paid annually. Please show all calculations
Assume that you purchase a five-year, $1,000 par value bond, with a 6 percent coupon and a yield of 7 percent. Immediately after you purchase the bond, yields rise to 8 percent and remain at that level to maturity. Calculate the realized horizon yield if you hold the bond to maturity. Interest is paid annually.
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For each of the bonds and reinvestment rates listed below calculate the amount of money accumulated at the end from a $1000 initial investment . Assume annual compunding .with a yield to immaturity Invest $1000 in a 5years zero coupon bond of 9percent
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An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual coupon. Bond L matures in 17 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturity and that 17 more payments are to be made on Bond L. What will the value of the Bond L be if the going interest rate is 5%? Round your answer to the nearest cent.
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Your company has bonds that mature in 12 years and have a face value of $1,000. The bonds have an 8 percent semi-annual coupon (pays $40 every six months). The bonds may be called in five years. The bonds have a YTM of 7 percent and a yield-to-call of 8.62 percent. Determine the bonds' call price. O $1,100 O $1,080 O $1,160 O $1,140 O $1,120

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