Homework Answers
Price of Bond Today =FV/(1+YTM)^18
=1000/(1+4.90%)^18 =422.7087
Price of Bond 2 years earlier =311.80
Annualized return if he sells the bond =(FV/PV)^(1/n)-1
=(422.7087/311.80)^(1/2)-1 =16.43%
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Question 15 5 pts Two years ago, Bob purchased a 20-year $1.000 par value zero-coupon bond...
Question 15 5 pts Two years ago, Bob purchased a 20-year $1,000 par value zero-coupon bond...
Question 15 5 pts Two years ago, Bob purchased a 20-year $1,000 par value zero-coupon bond for $311.80. If today (with 18 years to maturity) the bond is priced to yield 4.65%, what is his annualized return if he sells the bond? Hint: Calculate the price of the bond today, and use as FV to calculate the "return over 2 years. Your answer should be between 4.02 and 22.46, rounded to 2 decimal places, with no special characters.
Question 15 5 pt Two years ago, Bob purchased a 20-year $1,000 par value zero-coupon bond...
Question 15 5 pt Two years ago, Bob purchased a 20-year $1,000 par value zero-coupon bond for $311.80. If today (with 18 years to maturity) the bond is priced to yield 4.65%, what is his annualized return if he sells the bond? Hint: Calculate the price of the bond today, and use as FV to calculate the return over 2 years, Your answer should be between 402 and 22.46, rounded to 2 decimal places, with no special characters.
One year ago, an investor purchased a 10-year 8% annual coupon bond at par of $1,000....
One year ago, an investor purchased a 10-year 8% annual coupon bond at par of $1,000. Today (with 9 years to maturity) the bond is priced to yield 7.70%. If the bond is sold, what is the total return to the investor (interest plus appreciation) for the 1-year holding period? Hint: The total return includes the coupon rate plus the appreciation (or depreciation) due to the change in rates. Therefore, calculate the current price based on the yield, and then...
Question 14 5 pts One year ago, an investor purchased a 10-year 8% annual coupon bondat...
Question 14 5 pts One year ago, an investor purchased a 10-year 8% annual coupon bondat par of $1,000. Today with 9 years to maturity) the bond is priced to vield 7.653. If the bond is sold what is the total return to the investor (interest plus appreciation) for the 1 year holding period? Hint: The total return includes the coupon rate plus the appreciation for depreciation) due to the change in rates. Therefore calculate the current price based on...
Question 16 5 pts A 20-year, $1,000 par value bond has a 7% annual payment coupon....
Question 16 5 pts A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $760. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters.
Question 16 5 pts A 20-year, $1,000 par value bond has a 7% annual payment coupon....
Question 16 5 pts A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $800. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1.026.90, rounded to 2 decimal places, with no special characters.
Question 16 5 pts A 20-year $1,000 par value bond has a 7% annual payment coupon....
Question 16 5 pts A 20-year $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $840. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters. nuection 17
A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells...
A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $840. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters.
You purchased a zero coupon bond one year ago for $111.08. The bond has a par...
You purchased a zero coupon bond one year ago for $111.08. The bond has a par value of $1,000 and the market interest rate is now 11 percent. If the bond had 21 years to maturity when you originally purchased it, what was your total return for the past year? Assume semiannual compounding. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Bond X and Bond Y were issued at a premium to par value three years ago....
Bond X and Bond Y were issued at a premium to par value three years ago. Bond X matures in five years, and Bond Y matures in ten years. Both bonds carry the same credit rating. Bond X has a coupon of 7 .25%, and Bond Y has a coupon of 8.00%. If the yield to maturity for both bonds is 7.60% today: A. both bonds are priced at a premium. B. Bond X is priced at a premium, and...
Question 15 5 pts Two years ago, Bob purchased a 20-year $1,000 par value zero-coupon bond for $311.80. If today (with 18 years to maturity) the bond is priced to yield 4.65%, what is his annualized return if he sells the bond? Hint: Calculate the price of the bond today, and use as FV to calculate the "return over 2 years. Your answer should be between 4.02 and 22.46, rounded to 2 decimal places, with no special characters.
Question 15 5 pt Two years ago, Bob purchased a 20-year $1,000 par value zero-coupon bond for $311.80. If today (with 18 years to maturity) the bond is priced to yield 4.65%, what is his annualized return if he sells the bond? Hint: Calculate the price of the bond today, and use as FV to calculate the return over 2 years, Your answer should be between 402 and 22.46, rounded to 2 decimal places, with no special characters.
One year ago, an investor purchased a 10-year 8% annual coupon bond at par of $1,000. Today (with 9 years to maturity) the bond is priced to yield 7.70%. If the bond is sold, what is the total return to the investor (interest plus appreciation) for the 1-year holding period? Hint: The total return includes the coupon rate plus the appreciation (or depreciation) due to the change in rates. Therefore, calculate the current price based on the yield, and then...
Question 14 5 pts One year ago, an investor purchased a 10-year 8% annual coupon bondat par of $1,000. Today with 9 years to maturity) the bond is priced to vield 7.653. If the bond is sold what is the total return to the investor (interest plus appreciation) for the 1 year holding period? Hint: The total return includes the coupon rate plus the appreciation for depreciation) due to the change in rates. Therefore calculate the current price based on...
Question 16 5 pts A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $760. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters.
Question 16 5 pts A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $800. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1.026.90, rounded to 2 decimal places, with no special characters.
Question 16 5 pts A 20-year $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $840. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters. nuection 17
A 20-year, $1,000 par value bond has a 7% annual payment coupon. The bond currently sells for $840. If the yield to maturity remains at the current rate, what will the price be 10 years from now? Your answer should be between 770.15 and 1,026.90, rounded to 2 decimal places, with no special characters.
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