Rate of return on bond = ( P1 - P0 + Coupon ) / P0 = ( 1001 - 980 + 20 ) / 980 | 4.18% |
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1. Jack Welch bought a bond at $980 and sold it for $ 1001 after a...
Question 10 (2 points) What is the standard deviation of return for a stock with annual return of 13%, 9%, -12%, 10% over the last four years. AJ Question 12 (2 points) 1. Jack Welch bought a bond at $980 and sold it for $ 1001 after a year. He received a coupon payment of $ 20 in that year. What is his rate of return on his bond investment? AM
John just sold a $10,000 par value bond for $9,000. The bond interest rate was 8% per year. John owned the bond for 15 years. The 1st interest payment she received was 1 year after he bought the bond. He sold it immediately after receiving his 15th interest payment. John's yield on the bond was 16.5% per year. Determine the price he paid when he purchased the bond.
Jack bought an antique clock for $30. A year after he bought it the clock had increased in value by 20% and another year later the clock had increased in value by 15%. What is the clock worth two years after he bought it?
7-33: Marty bought a 6.75%, $10000 20-year bond for $7500 with 18 years maturity. The interest was payable quarterly and was based on the $10000. The bond was kept for only 12 years and sold for $8750 immediately after the 48th interest payment was received. (a) What is the nominal rate of return per year were made on this investment? Answer: <7 pts> Reasoning/Work: (b) What is the effective rate of return per year were made on this investment? Answer:...
John Smith bought a 8% coupon bond last year for $950. He collected the Coupon interest and sold the bond one year later for $1,000. What is the return on the bond?
7) Hunter bought a bond with an 8% coupon rate for $1,100 and sold it one year later for $1,150. His return over one year was A) 7.27% D) 11.8% B) 11.3%. C) 13.0%.
if an investor bought a 6% annual coupon bond for $1020 and sold it 2 years later for $1080, the annual rate of return on her 2-year investment will be a)10.65% b)17.65% c)11.76% d)8.47%
Please answer with formula and work
5. A Bond is currently sold at $980, it has 20 years to maturity and 9% coupon rate. The bond will be called in 5 years, the bond will be called at a premium of $1,050, what is yield to call?
"If the investment horizon is equal to the Macaulay duration of the bond, the investor is hedged against interest rate risk". However, the above statement is only true if interest rates only change before fist coupon payment is received. Using the following bond to show that if interest rate increases 2% between first and second coupon payment dates, the investor is not hedged against interest rate risk even if his duration gap is zero.: A four-year 33.7% annual coupon paying...
2. William bought a corporate bond for S5.450- The face value of the bond was $7,000 and he received semi- annual coupon payments at a rate of 4% per year until the bond matured (5 years romthe purchase The coupon payment that William received each period and ROR that William earned on his purchase are closest to _a)-$280,4.85%- $280, 9.94%- c) $140, 9.94% d) $140, 4.85% e) $140, 9.82% 4)-$280,-98296- -gr-s 109,4:33%- -_-.h), $ 109,-8.85%- i)-6218,8;77%. ._j)-$218;4.33%-- 4'pen 5,4So