An investor buys a $1000 face value bond paying a semi-annual coupon at 9% APR compounded semi-annually for $1500. Four years later, just after receiving his 8th coupon payment, the investor sells the bond for $924.00. What realized yield did the investor earn, stated as an APR with semi-annual compounding?
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- An investor buys a $1000 face value bond paying a semi-annual coupon at 9% APR compounded semi-annually for $700. Four years later, just after receiving his 8th coupon payment, the investor sells the bond for $924.00. What realized yield did the investor earn, stated as an APR with semi-annual compounding?You purchased a coupon-bearing bond at $800 and resold it at $900 after exactly one year. If the coupon is $60 paid annually, what is the current yield of the bond? O A. 0.075 O B. 0.125 O C. 0.067 O D. 0.200You buy a bond that pays annual interest payments of 7% of the bond’s face value of $1000. You initially pay $950 for the bond. You receive an annual interest payment after one year, then sell the bond for $880. What is your total rate of return on the investment, expressed as a percentage of the purchase price?
- Today an investor purchases a 30-year bond (face value =\$1,000) for $627.73. The bond has a coupon rate of 4% and a yield to maturity of 7%. It pays coupons annually (not semiannually). The investor plans to hold the bond for 1 year. If the yield to maturity of the bond becomes 8% at the end of the year, what is the bond rate of return over the year?An investor purchases a 10-year, 5.9% annual coupon payment bond at a price equal to par value. After the bond is purchased and before the first coupon is received, interest rates increase by 1.5%. The investor sells the bond after 7 years. Assume that interest rates remain unchanged at 5.9+1.5% over the 7-year holding period. Assuming that all coupons are reinvested over the holding period, what is the investor’s 7-year horizon yield?A person purchased a 10-year, 5 percent coupon (semiannual payments) bond for $1,050.00, what is the (annual) yield-to-maturity? Show the steps in solving it using Financial Calculator.
- Suppose you purchase a 10-year bond with 6.3% annual coupons. You hold the bond for four years, and sell it immediately after receiving the fourth coupon. If the bond's yield to maturity was 4.6% when you purchased and sold the bond, a. what cash flows will you pay and receive from your investment in the bond per $100 face value? b. what is the annual rate of return of your investment? Cash Flows - $113.39 $6.30 $6.30 $6.30 b. What is the annual rate of return of your investment? The annual rate of return of your investment is %. (Round to one decimal place.) $115.04You purchased a coupon-bearing bond at $1000 and resold it at $1200 after exactly one year. If the coupon is $60 paid annually, what is the current yield of the bond? OA 0.060 O B. 0.050 OC. 0.200 O D. 0.26You purchased a $1000 10-year bond that pays $95 annually. If the present value of the bond is $1050, what is the Yield to Maturity (YTM)?
- a) What is the value of a 10 year, 8.2% coupon bond with semiannual coupons.Assume the par value of the bond is $100 and it is redeemable at par. The interest rate (nominal, converted semiannually) is 10.6%. b) An investor purchased a bond that pays $5 coupons annually at the end of everyyear for five years. The purchase price was $100 and it was redeemed at par after fiveyears. If the annual effective inflation rate over the time period was 3%, calculate the realrate of return earned by the investor on this bond.You purchased a 10-year, 5% annual-coupon bond with $1,000 par value. The yield to maturity at the time of purchase was 4%. You sold the bond after one year, right after receiving the first coupon payment. The bond's yield to maturity was 3.5% when you sold it. What is your holding period return on the bond? Enter your answer as a decimal, rounded to four decimal places.Suppose you purchase a 10-year bond with 6.64% annual coupons. You hold the bond for 4 years, and sell it immediately after receiving the fourth coupon. If the bond's yield to maturity was 5.17% when you purchased and sold the bond, a. what cash flows will you pay and receive from your investment in the bond per $100 face value? b. what is the annual rate of return of your investment? a. What cash flows will you pay and receive from your investment in the bond per $100 face value? The cash flows from the investment are shown in the following timeline: (Round to the best choice below.) OA. Years Cash Flows O B. Years C. Years Cash Flows Cash Flows - $114.06 O D. Years 0 Cash Flows $107.42 0 0 - $111.26 0 $111.26 1 $6.64 1 $6.64 1 $6.64 1 $6.64 2 $6.64 2 + $6.64 2 + $6.64 2 + $6.64 3 $6.64 3 $6.64 3 $6.64 3 $6.64 b. What is the annual rate of return of your investment? The annual rate of return of your investment is %. (Round to two decimal places.) 4 $114.06 4 $107.42 4 $114.06 4…