Homework Answers
Solution:
Capital gain yield is the appreciation in the value of asset
becuase of the rise in the price of an asset.Find the attached
calculation:
thus answer will be option b.
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Question 18 (1 point) Use the following information to answer 16-20. An 8-year, 10 percent semiannual...
Question 16 (1 point) Use the following information to answer 16-20. An 8-year, 10 percent semiannual...
Question 16 (1 point) Use the following information to answer 16-20. An 8-year, 10 percent semiannual coupon bond, with a par value of $1,000, may be called in 3 years at a call price of $1,040. The bond sells for $1,060. What is the bond's yield to maturity? 10% 6.34% 4.47% 8.93%
Question 18 use the following information to answer 16-20. an 8year, 10 percent semiannual coupon bond,...
Question 18 use the following information to answer 16-20. an 8year, 10 percent semiannual coupon bond, with a par value of $1,000 may be called in 3 years at a call price of $1,040. the bond sells for $1,060. What is the bonds capital gain or loss yield? A) -.3% B) .4% C) -.5% D) .51%
Question 20 (1 point) Use the following information to answer 16-20. An 8-year, 10 percent semiannual...
Question 20 (1 point) Use the following information to answer 16-20. An 8-year, 10 percent semiannual coupon bond, with a par value of $1,000, may be called in 3 years at a call price of $1,040. The bond sells for $1,060. Assuming YTM does not change, what will the price of the bond be in one year? $1,054.59 $1,066.23 $1,060 $1,040
An 8 year, 10 percent semi-annual coupon bond, with a par value of $1,000, may be...
An 8 year, 10 percent semi-annual coupon bond, with a par value of $1,000, may be called in 3 years at a call price of $1,040. The bond sells at $1,060. What is the bonds capital gain or loss yield? Options: A)0.4% B)-0.3% C)-0.5% D)0.51%
A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in...
A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040. The bond sells for $1,100. (Assume that the bond has just been issued.) Basic Input Data: Years to maturity: 20 Periods per year: 2 Periods to maturity: Coupon rate: 8% Par value: $1,000 Periodic payment: Current price $1,100 Call price: $1,040 Years till callable: 5 Periods till callable: a. What is the bond's yield to maturity?...
A 25-year, 8% semiannual coupon bond with a par value of $1,000 may be called in...
A 25-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,100. The bond sells for $950. (Assume that the bond has just been issued.) a. What is the bond's yield to maturity? Round your answer to two decimal places b. What is the bond's current yield? Round your answer to two decimal places. c. What is the bond's capital galn or loss yleld? Loss should be Indicated...
A 15-year bond with a 10 percent semiannual coupon has a par value of $1,000. The...
A 15-year bond with a 10 percent semiannual coupon has a par value of $1,000. The bond may be called after 10 years at a call price of $1,050. The bond has a nominal yield to call of 6.5 percent. What is the bond's yield to maturity, stated on a nominal, or annual basis? a.5.97% b.6.30 % c. 6.75% d.6.95 % 0 .7.10 %
A 10 year , 12 percent semiannually coupon with a par value of $1000, may be...
A 10 year , 12 percent semiannually coupon with a par value of $1000, may be called in 4 years at a call price of $1060.The bond sell for $1100.(Assume that the bond has just been issued) a) what is the bond's yield to maturity? b) what is the bond's current yield? C) What is the bond's capital gain or loss yield d)What is the bond's yield to call ?
3. A 12-year, 12% semiannual coupon bond with a par value of $1,000 may be called...
3. A 12-year, 12% semiannual coupon bond with a par value of $1,000 may be called in 6 years at a call price of $1,030. The bond sells for $1,150. (Assume that the bond has just been issued.) a. What is the bond’s yield to maturity? b. What is the bond’s current yield? c. What is the bond’s capital gain or loss yield? d. What is the bond’s yield to call?
Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of...
Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,060 and it sells for $1,150. What is the bond's nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. % What is the bond's nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places. % What is...
Question 16 (1 point) Use the following information to answer 16-20. An 8-year, 10 percent semiannual coupon bond, with a par value of $1,000, may be called in 3 years at a call price of $1,040. The bond sells for $1,060. What is the bond's yield to maturity? 10% 6.34% 4.47% 8.93%
Question 20 (1 point) Use the following information to answer 16-20. An 8-year, 10 percent semiannual coupon bond, with a par value of $1,000, may be called in 3 years at a call price of $1,040. The bond sells for $1,060. Assuming YTM does not change, what will the price of the bond be in one year? $1,054.59 $1,066.23 $1,060 $1,040
A 25-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,100. The bond sells for $950. (Assume that the bond has just been issued.) a. What is the bond's yield to maturity? Round your answer to two decimal places b. What is the bond's current yield? Round your answer to two decimal places. c. What is the bond's capital galn or loss yleld? Loss should be Indicated...
A 15-year bond with a 10 percent semiannual coupon has a par value of $1,000. The bond may be called after 10 years at a call price of $1,050. The bond has a nominal yield to call of 6.5 percent. What is the bond's yield to maturity, stated on a nominal, or annual basis? a.5.97% b.6.30 % c. 6.75% d.6.95 % 0 .7.10 %
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