Six years ago, Shirley Harper bought a 10-year bond that pays 8 percent semiannually for $1001.10. Today, she sold it for $1,067.22. What is the realized yield on her investment? (Round to the nearest percent.) 6% O 12% O none of these O 7% 10%
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- An investor bought a zero-cupon bond with $1000 face value and 10 years to maturity for $630.35. She sold it after 7 years. If the YTM when she sold it was 3,4%, what price did she sell it for?Caleb buys a(n) 10.07% corporate bond with a current yield of 6.89%. When he sells the bond one year later, the current yield on the bond is 7.13 %. How much did Caleb make on this investment? Question content area bottom Part 1 The amount Caleb made on this investment is $ enter your response here. (Round to the nearest cent.)You plan to invest in bonds that pay 6.0%, compounded annually. If you invest $10,000 today, how many years will it take for your investment to grow to $15,000? a. 13.92 years b. 13.72 years c. 6.55 years d. 16.67 years e. 6.96 years
- A5 Riley purchased a bond for 1000 11 years ago. The bond rate is 5 percent and the face value is 1,000. What should the selling price be in order to obtain a yield of 7.4 percent?What would you pay for a $205,000 debenture bond that matures in 15 years and pays $10,250 a year in interest if you wanted to earn a yield of 2%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)What would you pay for a $195,000 debenture bond that matures in 15 years and pays $9,750 a year in interest if you wanted to earn a yield of: Click here to view factor tables. (a) 3%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.) Amount to pay tA $
- Suppose that someone owns a 30 year $14,000 T-bond with a rate of 6%. After five years the bond is sold for cash, but the interest rates have risen to 8.5%. (a)How much has the bond paid in total for the first five years? (b)How much will the bond pay the person buying it over the next 25 years? (c)How much is the bond currently worth?Four years ago, Lisa Stills bought six-year, 9.50 percent coupon bonds issued by the Fairways Corp. for $947.68. If she sells these bonds at the current price of $877.07, what will be her realized yield on the bonds? Assume similar coupon-paying bonds make annual coupon payments. (Round answer to 2 decimal places, e.g. 15.25%.) Realised rate of return %3. Assume you purchased a bond for $9,186. The bond pays $300 interest every six months. You sell the bond after 18 months for $10,000. Calculate the following: a. Income. b. Capital gain (or loss). c. Total return in dollars and as a percentage of the original investment. Review Only Click the icon to see the Worked Solution. a. The current income is $ (Round to the nearest dollar.) b. The capital gain (or loss) is $ (Enter a loss as a negative number and round to the nearest dollar.) c. The total return in dollars is $ (Round to the nearest dollar.) The total return as a percentage of the original investment is %. (Enter as a percentage and round to two decimal places.)
- You're considering an investment in 10-year, $1,000 face value bonds that pay 8.50% annually and sell for $1,033.55. If you do make the purchase, how much will you earn? Select one: O a. 8.00% O b. 8.50% Oc. 7.59% Od 8.25% Oe. 8.86% Clear my choice AWhat would you pay for a $180,000 debenture bond that matures in 15 years and pays $9,000 a year in interest if you wanted to earn a yield of: Click here to view factor tables. (a) 2%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Amount to PayAn investor just purchased a 10-year, $1,000 par value bond. The coupon rate on this bond is 5 percent with interest being paid semiannually. If the investor expects to earn an 8 percent rate of return on this bond, how much should she pay for it? A. $950.75 OB.$1,003.42 OC. $875.38 OD. $1,122.87 E.$796.15