You buy a 10-year $1,000 par value 4% annual-payment coupon bond priced to yield 6%. You...
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You buy a 10-year $1,000 par value 4% annual-payment coupon bond priced to yield 6%. You sell the bond at year-end. What is your holding period return (i.e., HPR)? |
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You buy a 10-year $1,000 par value 4% annual-payment coupon bond
priced to yield 6%. You...
You buy an 9-year $1,000 par value bond today that has a 6.50% yield and a...
You buy an 9-year $1,000 par value bond today that has a 6.50% yield and a 6.50% annual payment coupon. In 1 year promised yields have risen to 7.50%. What would be the EAR be? And how do you calculate it? How does it compare to Holding period of 1 year?
You buy a 20-year, 5.5% annual coupon bond with an 8% YTM. if you sell your...
You buy a 20-year, 5.5% annual coupon bond with an 8% YTM. if you sell your bond in a year with a 6% YTM, what is your holding period return (HPR)? ALL WORK MUST BE SHOWN
One year ago, an investor purchased a 10-year 8% annual coupon bond at par of $1,000....
One year ago, an investor purchased a 10-year 8% annual coupon bond at par of $1,000. Today (with 9 years to maturity) the bond is priced to yield 7.70%. If the bond is sold, what is the total return to the investor (interest plus appreciation) for the 1-year holding period? Hint: The total return includes the coupon rate plus the appreciation (or depreciation) due to the change in rates. Therefore, calculate the current price based on the yield, and then...
Saved Help Save &Exit Su You buy an 7-year $1,000 par value bond today that has...
Saved Help Save &Exit Su You buy an 7-year $1,000 par value bond today that has a 540% yield and a 540% annual payment coupon. In 1 year prom sed yields have risen to 6.40%. Your 1year holding period return was-. Multiple Choice 1.08% -486% -272% 0.54%
Today you purchase a coupon bond that pays an annual interest, has a par value of...
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 two-year bond with face value $1,000 and annual coupon payment of $100 is priced at...
A two-year bond with face value $1,000 and annual coupon payment of $100 is priced at $1,000. If the one-year interest rate next year turns out to be 13%. What will be the realized compound yield? 9.91% 10.09% 10.00% 10.14%
8. You buy a 12-year 10 percent annual coupon bond at par value, $1,000. You sell...
8. You buy a 12-year 10 percent annual coupon bond at par value, $1,000. You sell the bond three yean is your rate of return over this three-year period? A 40 percent B. 10 percent C. 20 percent D. 30 percent 11. Duration True or false? Explain. a. Longer-maturity bonds necessarily have longer durations. b. The longer a bond's duration, the lower its volatility. c. Other things equal, the lower the bond coupon, the higher its volatility. d. If interest...
A 2-year bond with par value $1,000 making annual coupon payments of $106 is priced at...
A 2-year bond with par value $1,000 making annual coupon payments of $106 is priced at $1,000. a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) Yield to maturity [ 10.6% b. What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be () 10%, (ii) 12%, (iii) 14%? (Round your answers to 2 decimal places.) Realized YTM 10% 12% 14%
A two-year bond with par value $1,000 making annual coupon payments of $108 is priced at...
A two-year bond with par value $1,000 making annual coupon payments of $108 is priced at $1,000. a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) Yield to maturity 10.81% b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 8.8%, (b) 10.8%, (c) 12.8%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Realized YTM Interest...
You buy a bond with a $1,000 par value today for a price of $900. The...
You buy a bond with a $1,000 par value today for a price of $900. The bond has five years to maturity and makes annual coupon payments of $80 per year. You hold the bond to maturity, but you do not reinvest any of your coupons. What was your realized compound return over the holding period?
One year ago, an investor purchased a 10-year 8% annual coupon bond at par of $1,000. Today (with 9 years to maturity) the bond is priced to yield 7.70%. If the bond is sold, what is the total return to the investor (interest plus appreciation) for the 1-year holding period? Hint: The total return includes the coupon rate plus the appreciation (or depreciation) due to the change in rates. Therefore, calculate the current price based on the yield, and then...
Saved Help Save &Exit Su You buy an 7-year $1,000 par value bond today that has a 540% yield and a 540% annual payment coupon. In 1 year prom sed yields have risen to 6.40%. Your 1year holding period return was-. Multiple Choice 1.08% -486% -272% 0.54%
8. You buy a 12-year 10 percent annual coupon bond at par value, $1,000. You sell the bond three yean is your rate of return over this three-year period? A 40 percent B. 10 percent C. 20 percent D. 30 percent 11. Duration True or false? Explain. a. Longer-maturity bonds necessarily have longer durations. b. The longer a bond's duration, the lower its volatility. c. Other things equal, the lower the bond coupon, the higher its volatility. d. If interest...
A 2-year bond with par value $1,000 making annual coupon payments of $106 is priced at $1,000. a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) Yield to maturity [ 10.6% b. What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be () 10%, (ii) 12%, (iii) 14%? (Round your answers to 2 decimal places.) Realized YTM 10% 12% 14%
A two-year bond with par value $1,000 making annual coupon payments of $108 is priced at $1,000. a. What is the yield to maturity of the bond? (Round your answer to 1 decimal place.) Yield to maturity 10.81% b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 8.8%, (b) 10.8%, (c) 12.8%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Realized YTM Interest...
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