8. An investor purchases a bond for $949. The bond pays $60 a year for three...
8. An investor purchases a bond for $949. The bond pays $60 a year for three years and then matures (it is redeemed for $1,000). What is the internal rate of return on that investment? In Chapter 13, what was this return called?
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8. An investor purchases a bond for $949. The bond pays $60 a year for three...
An investor purchases a bond for $949. The bond pays $70 a year for three years...
An investor purchases a bond for $949. The bond pays $70 a year
for three years and then matures (it is redeemed for $1,000). What
is the internal rate of return on that investment? Use Appendix B
and Appendix D to answer the question. Round your answer to the
nearest whole number.
The internal rate of return on a bond is %.
This return can be also called as current yield/yield to
maturity/yield to call.
Appendix B
Appendix D
What is the rate of return for an investor who pays $1,020 for a three-year bond...
What is the rate of return for an investor who pays $1,020 for a three-year bond with a 8% coupon rate and sells the bond one year later for the price carrying 8% YTM?
An investor purchases a mutual fund for $30. The fund pays dividends of $.60, distributes a...
An investor purchases a mutual fund for $30. The fund pays dividends of $.60, distributes a capital gain of $5, and charges a fee of $5 when the fund is sold one year later for $32.40. What is the net rate of return from this investment? (Enter your answer to the nearest whole number.)
An investor purchases a 7-year, $1,000 par value bond that pays semianual interest of $40. If...
An investor purchases a 7-year, $1,000 par value bond that pays
semianual interest of $40. If the semianual market rate of interest
is 5%, what is the current market value of the bond?
15 current market value of the bone ASLASSEYASIDSLESVOS provided) $901 $944 $1000
What is the rate of return for an investor who pays $1,011.55 for a three year...
What is the rate of return for an investor who pays $1,011.55 for a three year bond with a 6.1% coupon paid annually and a face value of $1,000 and sells the bond one year later for $989.54? Enter your answer as a percentage.
What is the rate of return for an investor who pays $943.11 for a three year...
What is the rate of return for an investor who pays $943.11 for a three year bond with a 5.9% coupon paid annually and a face value of $1,000 and sells the bond one year later for $925.44? Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response below. Enter your answer rounded to 2 DECIMAL PLACES. What is the rate of return for an investor who pays $943.11 for a three...
An investor purchases a 9-year, $1,000 par value bond that pays semiannual interest of $45. If...
An investor purchases a 9-year, $1,000 par value bond that pays semiannual interest of $45. If the semiannual market rate of interest is 6%, what is the current market value of the bond? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
An investor purchases a 12-year, $1,000 par value bond that pays semiannual interest of $45. If...
An investor purchases a 12-year, $1,000 par value bond that pays semiannual interest of $45. If the semiannual market rate of interest is 5%, what is the current market value of the bond? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Ο $969. Ο $1,000. Ο $931. Ο $1,621.
An investor purchases a 10-year , $1,000 par value bond that pays semiannual interest of $45....
An investor purchases a 10-year , $1,000 par value bond that pays semiannual interest of $45. If the semiannual market rate of interest is 6%, what is the current market value of the bond? (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) Multiple Choice $828 $878 $1,000 О O $1,516
A 15 year bond has a par-value of 500 and pays semi-annual coupons at a 7% rate. An investor purchases the bond at a pri...
A 15 year bond has a par-value of 500 and pays semi-annual coupons at a 7% rate. An investor purchases the bond at a price such that its yield to maturity is 6% convertible semi-annually. The investor sells the bond immediately after 8th payment at a price such that its new owner's yield to maturity is 5% convertible semi-annually. What was the original investor's yield convertible semi-annually on this investment over the 4-year period?
An investor purchases a 7-year, $1,000 par value bond that pays
semianual interest of $40. If the semianual market rate of interest
is 5%, what is the current market value of the bond?
15 current market value of the bone ASLASSEYASIDSLESVOS provided) $901 $944 $1000
What is the rate of return for an investor who pays $943.11 for a three year bond with a 5.9% coupon paid annually and a face value of $1,000 and sells the bond one year later for $925.44? Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response below. Enter your answer rounded to 2 DECIMAL PLACES. What is the rate of return for an investor who pays $943.11 for a three...
An investor purchases a 9-year, $1,000 par value bond that pays semiannual interest of $45. If the semiannual market rate of interest is 6%, what is the current market value of the bond? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
An investor purchases a 12-year, $1,000 par value bond that pays semiannual interest of $45. If the semiannual market rate of interest is 5%, what is the current market value of the bond? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Ο $969. Ο $1,000. Ο $931. Ο $1,621.
An investor purchases a 10-year , $1,000 par value bond that pays semiannual interest of $45. If the semiannual market rate of interest is 6%, what is the current market value of the bond? (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) Multiple Choice $828 $878 $1,000 О O $1,516
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