Question

P10.10 (similar to) Question Help Caleb buys a(n) 10.95 % corporate bond with a current yield of 5.11%. When he sells the bond 1 year later, the current yield on the bond is 7.02 %. How much did Caleb make on this investment? ila The amount Caleb made on this investment is $ (Round to the nearest cent. nne- Srk b exte icure- Enter your answer in the answer box and then click Check Answer arn me Check Answr Clear All All parts showing Pages

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

- 2x CERE, Insert Delete Format Cell Styles Σ AutoSum : A Fill Sort & 2 Clear Filter Editing Find & Select Cells BOND - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins % Cut Calibri -11AA = = = Dr Wrap Text General Ea Copy Paste B I U B- E A = 5 st Fat Merge Merge & Center - Center $ $ -% Format Painter % , .0 .00 . Conditional Format Formatting as Table Clipboard Font Alignment Number Styles N607 K M 598 CURRENT YIELD = COUPON/ PRICE 599 5.11% = (1000 X 10.95%)/PRICE 5.11% = 109.50/PRICE PRICE = 109.50/5.11% 602 PRICE = 2142.86 603 604 AFTER A YEAR 605 CURRENT YIELD = COUPON/ PRICE 7.02%= 109.50/PRICE 607 PRICE = 109.50/7.02% 608 PRICE = 1559.83 609 THE AMOUNT CALEB MADE 611 ON THIS INVESTMENT 600 601 606 610 612 613 614 615 - PO 616 617 P1 1559.83 + C1 109.5 COUPON 2142.86 ANSWER -473.53 [P1 +C1-PO] BANKING NOTE 51 53 CLEAN PRICE $10 I N YIELD SPOT ferences Sheet2 AFN BIDDING, UNDERWRITING EUAC AW LIFELP, IP, MRP, INFLATION WARRANT refund 54 55 56 0 BOU 120% 0 -_ 0 -_ Rea 1 + S E O * ENG 04-11-2019