You have purchased a bond 30 months ago with par=$1000, semi-annual coupons of 90 (=PMT) and YTM of 9%. If you sell the bond today, what is the value of coupons you have received while holding the bond (i.e.FVcoupons) today, given a coupon reinvestment rate of 2% over the past 30 months?
Value of the coupons from reivesting the coupons
=Annual coupon/reinvestment rate*((1+reinvestment rate)^number of
coupons-1)
=90/2%*(1.01^5-1)
=229.54523
You have purchased a bond 30 months ago with par=$1000, semi-annual coupons of 90 (=PMT) and...
You have purchased a bond 30 months ago with par=$1000, semi-annual coupons of 30 (=PMT) and YTM of 4%. If you sell the bond today, what is the value of coupons you have received while holding the bond (i.e.FVcoupons) today, given a coupon reinvestment rate of 7% over the past 30 months? Please explain solution and please be sure of the work.
You have purchased a bond 30 months ago with par=$1000, semi-annual coupons of 40 (=PMT) and YTM of 10%. If you sell the bond today, what is the value of coupons you have received while holding the bond (i.e.FVcoupons) today, given a coupon reinvestment rate of 2% over the past 30 months?
Two years ago you have purchased a bond with $1000 par, semi-annual coupons with a coupon rate of 8% and maturity of 20 years for $ 1,200. Calculate your holding period return for this bond over the last two years, if you were able to reinvest coupons at 11% and the current YTM is 7%!
2 years ago, you acquired a 10-year 0% coupon, $1000 face value bond at a YTM of 12%. Today, you sold this bond at a YTM of 8%. Calculate your annualized Horizon Yield [HY] Assuming sem-annual compounding: answer 28.7842% With a financial calculator, how do you find this? Bonds of RCY Corporation with a face value of $1000 sells for $960, mature in 5 years, and have a 7% coupon rate paid semiannually. Calculate the investor's RCY by assuming the...
You have purchased a bond with 23 year maturity, 2% coupon rate, $1000 face value, and semi-annual payments for $834.72 Two years later, when the YTM=2.5%, you sell the bond. What was your average annual realized yield on the bond, if you were able to reinvest coupons at 3%? [Provide your answer in percent rounded to two decimals, omitting the % sign.]
For the following, assume the normal case that bond coupons are semi-annual a) What is the yield to maturity (YTM) on a 11-year, 6.4% coupon bond if the bond is currently selling for $1,000? (Assume semi-annual coupons) 1% b) What is the YTM on the above bond if the value today is $925 637 % c) For the bond in a) above, what is your realized (actual) EAR it immediately after you purchase the bond market rates, and the rate...
Five years ago, Cookie Corp. issued a bond with 15% coupon rate, semi-annual coupon payments, $1000 face value and 15 years until maturity. The current YTM is 16%. If you sell the bond today (next coupon payment is in 6 months from today), after having owned it for 4 years, what would your capital gain/loss yield? Please show formulas and do not use excel or financial calculator.
A $1000 par value bond with 6 years to maturity pays semi-annual coupons at a rate of 12% APR, with next coupon paid 6-months from today. If the bond is currently priced at $1,049.35, what is it's yield to maturity?
Seven years ago you purchased a $1,000 par bond with a 7% semi-annual coupon and 12 years to maturity at a yield of 6.2%. Today the bond trades at a yield of 9.15%. What is the price of the bond today? A. $1,033.95 B. $639.78 C. $915.25 D. $845.33
You Purchased an Apple Incorporated bond one year ago for $932.75. This bond pays a semi-annual coupon at 7% rate. Today this Apple Inc bond sells for $988.50, and as of today this bond has 15 years left to maturity. If you sell this bond today, what is your realized rate of return from the time you purchased it until today (coupon yield plus capital gain)?