return over one year will be
=(1150-1100+1100*8%)/1100
=13%
the above is answer..
7) Hunter bought a bond with an 8% coupon rate for $1,100 and sold it one...
John Smith bought a 8% coupon bond last year for $950. He collected the Coupon interest and sold the bond one year later for $1,000. What is the return on the bond?
if an investor bought a 6% annual coupon bond for $1020 and sold it 2 years later for $1080, the annual rate of return on her 2-year investment will be a)10.65% b)17.65% c)11.76% d)8.47%
Tom bought 5 bonds with $1,000 face value for $1,100 5 years ago. The coupon rate is 8%. Tom sold the bond for $900 today. What is Tom’s total percentage return?
4. Calculating Returns (L01) Suppose you bought a 7 percent coupon bond one year ago for $970. The bond sells for $940 today. a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? b. What was your total nominal rate of return on this investment over the past year? c. If the inflation rate last year was 3 percent, what was your total real rate of return on this investment?
Suppose that you just bought a four year $1,000 coupon bond with a coupon rate of 6.8% when the market interest rate is 6.6%. One year later, the market interest rate falls to 4.6% The rate of return earned on the bond during the year was % (Round your response to two decimal places.)
Suppose that you just bought a four-year $1,000 coupon bond with a coupon rate of 6.3% when the market interest rate is 6.3%. One year later the market interest rate falls to 4.3% The rate of return earned on the bond during the year was % (Round your response to two decimal places.)
7. An IBM bond has 11 years until maturity, a coupon rate of 8%, a par value of $1,000 and sells for $1,150 a. If coupon payments are made semi-annually, what is the yield to maturity for the bond? b. What is the coupon yield on the bond? C. If you sell it after 1 year and interest rates have increased to 7.5%, what return do you earn?
suppose that you just bought a four-year $1,000 coupon bond with a coupon rate of 6.6% when the market interest rate is 6.6%. One year later, The market interest rates fall to 4.6%. The rate of return earned on the bond during the year was ___%. (Round your response to two decimal places.)
8. An investor just bought a two-year zero-coupon bond of nominal value 100$ with yield 7%. After one year, he sold it with a yield 5%. What is the rate investor? of profit gained by the
1. Jack Welch bought a bond at $980 and sold it for $ 1001 after a year. He received a coupon payment of $ 20 in that year. What is his rate of return on his bond investment? A