true or false: the holding period return is just another name for the bond yield they both measure the return to the investor.
true or false: the holding period return is just another name for the bond yield they both measure the return to the investor.
An investor purchases a 10yr, 6% coupon bond at a price of 1000. compute the two year holding period yield assuming interest rates increase to 8% immediately after the bond is purchased. A. .5% B. 2.3% C. 8.7% D. 10.4%
An investor is indifferent between holding a corporate bond with a before-tax yield of 6.61% and a tax-exempt municipal bond with a yield of 4.51%. What is the marginal tax rate of the investor, in %, to the nearest 0.1%? E.g., if your answer is 27.13%, enter it as 27.1.
The yield to maturity is a better measure than the current yield if you are a long term bond investor True or false?
True or False? 1. Dividend yield measures the rate of return on the market price of a share. True or False? 2. The dividend payout ratio measures the percentage of profit paid out in dividends to ordinary shareholders. True or False? 3. Dividend per share is the ratio to use when comparing income from shares with income yield from alternative investments. True or False? 4. Dividend yield is an important ratio for an investor who is acquiring shares mainly for...
Suppose you bought a bond with 5 periods to maturity at a per period yield of 8%. The Macaulay duration of this bond is 3.3 periods. You sell this bond after holding it for 4 periods. The per period reinvestment rate and the selling yield are both 7%. What is the per period return you get from holding this bond? A. smaller than 8% B. larger than 8% C. equal 8%
Problem 7-30 Holding Period Yield [LO2] The YTM on a bond is the interest rate you earn on your investment if interest rates don't change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY). a. Suppose that today you buy a bond with an annual coupon of 8 percent for $1,030. The bond has 17 years to maturity. What rate of return do you expect to earn on your...
please help to calculate discount yield, YTM, Holding period yield and Capital Gain. I have done the rest. This question is intended for personal knowledge and not for assignment purposes. of QUESTIUN 3: upum URT eyr Assume that a 10-year bond with a face value of Tshs 100,000 is selling at a discount price of Tshs 95,000. It has an annual coupon income of Tshs 10,000. The investor plar to sell it after 5 years at a price of Tshs...
1. (Holding Period Yield) A few years ago, XYZ Corp. issued a bond with a par value of $1000 and annual coupon rate of 7 percent paid SEMIANNUALLY (2 times per year). At present (time 0), the bond has 20 years to maturity. a. If the yield to maturity (YTM) on this bond is now 10 percent, what is the current price of the bond (at time 0)? In your answer, please indicate your entries: N = I/Y= FV =...
The holding-period return (HPR) for a stock is equal to A. the real yield minus the inflation rate. B. the nominal yield minus the real yield. C. the capital gains yield minus the tax rate. D. the capital gains yield minus the dividend yield. E. the dividend yield plus the capital gains yield.
please answer within the hour true and false 11.) A yield curve shows the relationship between the level of interest rates and the value of the financial asset. 12.A zero coupon bond, such as a U.S. Savings Bond, does not pay interest to the bond owner. 13.An investor in a U.S. common stock requires a higher return than a investor in a preferred stock for the same company. However, bond holders tend to earn higher returns in the long run...