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Page 11 20. Three years ago you purchased a bond for $974.69. The bond had three...
. Example: A bond was issued several years ago at par when the interest rate was 7 %, which was also its coupon rate (annual payment). Now, with three years left in t he bond's life, the interest rate is 8% per year. . What is the bond's price? . In another year, after the next coupon is paid and the remaining maturity falls to tw o years, how much would the bond be sold at? . What is the...
A- You bought a bond five years ago for $779 per bond. The bond is now selling for $760. It also paid $50 in interest per year, which you reinvested in the bond. Calculate the realized rate of return earned on this bond. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Realized rate of return % B- You have just been offered a bond for $863.90. The coupon rate is 7 percent payable...
Six years ago, you purchased a callable bond with fifteen years until maturity. The bond has a $1,000 par value and pays interest semiannually. The bond has 9% coupon rate and a 6% yield to maturity. The bond offers three years of call protection and a 2% call premium. a. How much did you pay for the bond at the time of purchase? b. Today, the firm called the bond. What is the bond’s yield to call? c. Did the...
You Purchased an Apple Incorporated bond one year ago for $932.75. This bond pays a semi-annual coupon at 7% rate. Today this Apple Inc bond sells for $988.50, and as of today this bond has 15 years left to maturity. If you sell this bond today, what is your realized rate of return from the time you purchased it until today (coupon yield plus capital gain)?
You bought a bond five years ago for $856 per bond. The bond is now selling for $850. It also paid $60 in interest per year, which you reinvested in the bond. Calculate the realized rate of return earned on this bond. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16) Realized rate of return
You bought a bond five years ago for $856 per bond. The bond is now selling for $850. It also paid $60 in interest per year, which you reinvested in the bond. Calculate the realized rate of return earned on this bond. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Realized rate of return 631 3196 rch
1) A 20-year bond pays interest at 4% and was issued 12 years ago with a face value of $2,000. Semi-annual interest. What is the bond's price today if the interest rate on comparable new bond issues is 6%? 2) A company has an AAA bond (Triple-A bond) with 14 years until maturity. The bond has a face value of $1,000 and carries a coupon rate of 5%. Semi-annual interest. Approximately what is the bond market yield today if the...
Three investors invest in the same 10-year 8% annual coupon bond. They bought the bond at the same price ($85.503075 for a par value of $100) and at the same time. A is a buy-and-hold investor (hold till maturity), B will sell the bond after four years, and C will sell the bond after seven years. What is the yield to maturity of this bond? For each of these three investors, find the total cash flow (in dollar amount) at...
PLEASE BREAKDOWN YOUR ANSWER, THANK YOU Alex purchased a $1,000 par value bond one year ago at a price of $1,008. At the time of purchase, the bond had 14 years to maturity and a 6 percent, semiannual coupon. Today, the yield to maturity of changed to 6.5 percent and he sold the bond. What is his realized yield as of today?
a. b. c. Three years ago you purchased a 9% coupon bond that pays semiannual coupon payments for $962. What would be your bond equivalent yield if you sold the bond for current market price of $1,045? Your bond equivalent yield if you sold the bond for current market price is Round to two decimal places. Assume that an investor pays $920 for a long-term bond that carries a coupon of 11%. In 3 years, he hopes to sell the...