4)
*Please rate thumbs up
4) You purchase a $1000 par, zero coupon bond today for $225, and it matures in...
Assume that you purchase a $1000 par, zero coupon bond today for $225, and it matures in 11 years. What rate of return will you earn on the bond, if you hold it to maturity? Suppose you sell the bond in three years at a price of $342, what rate of return would you earn?
Packman Manufacturing Corp. is looking to issue $1000 par value, zero-coupon bond today for $225, and it matures in 11 years. What rate of return will you earn on the bond, if you hold it to maturity? Suppose you sell the bond in 3 years at a price of $342, what rate of return would you earn?
Today you purchase a coupon bond that pays an annual interest, has a par value of $1,000, matures in six years, has a coupon rate of 10%, and has a yield to maturity of 8%. One year later, you sell the bond after receiving the first interest payment and the bond's yield to maturity had changed to 7%. Your annual total rate of return on holding the bond for that year is ?
A coupon bond that pays interest annually has a par value of $1000, matures in 11 years, and has a yield to maturity of 3%. If the coupon rate is 7%, the intrinsic value of the bond today will be
A coupon bond that pays interest annually has a par value of $1000, matures in 11 years, and has a yield to maturity of 3%. If the coupon rate is 7%, the intrinsic value of the bond today will be
Suppose you purchase a 30-year, zero-coupon bond with a yield to maturity of 6.3%. You hold the bond for five years before selling it a. If the bond's yield to maturity is 6.3% when you sell it, what is the annualized rate of return of your investment? b. If the bond's yield to maturity is 7.3% when you sell it, what is the annualized rate of return of your investment? c. If the bond's yield to maturity is 5.3% when...
4. A coupon bond that pays interest semi-annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. The value of the bond today will be rate is 8% a. $1,075.80 b.$924.16 if the coupon c. $922.78 d. $1,077.20 e. none of the above 5. A zero-coupon bond has a yield to maturity of 9% and a par value of$1,000. Ifthe bond matu in 8 years, the bond should sell for a...
You own a zero-coupon bond of Amazon. It matures in 4 years, has a face (par) value of $1,000. An investor is interested in buying the bond from you it she can earn a yield to maturity of 11.00%. How much is the investor willing to pay for the bond (What is the value of the bond)?
1. Kramerica Industries has issued a $1000 par, 7.8% coupon bond that matures in 4 years. What is the current price of this bond if you require a 6.5% return for investing in this security? 2. Kenny Rogers Roasters has issued a $1000 par, 5.4% coupon bond that matures in 25 years. What is the current price of this bond if you require a 9.7% return for investing in this security? (Hint: You'll want to use the shortcut in this...
Suppose you purchase a 30-year zero-coupon bond with a yield to maturity of 5.5 % You hold the bond for five years before selling it.a. If the bond's yield to maturity is 5.5 % when you sell it, what is the rate of return of your investment? b. If the bond's yield to maturity is 6.5 % when you sell it, what is the rate of return of your investment? c. If the bond's yield to maturity is 4.5 %...