Question

Suppose you paid $600 for a $600 thanks value coupon bond with a coupon rate of...

Suppose you paid $600 for a $600 thanks value coupon bond with a coupon rate of 7% and you sold it for 900 after holding for a year. The YTM for the bond is ______% and the rate of return is ____%

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose that you bought a four year coupon bond with $10,000 face value, 6% coupon rate...
Suppose that you bought a four year coupon bond with $10,000 face value, 6% coupon rate and 7% yield to maturity. After holding it for a year and collecting the first coupon payment you decide to sell it. Calculate the return (in %) on this investment if the interest rate has just dropped to 5%. With Formula's Please
you purchased s coupon bond at a price of 1059. the coupon rate for the bond...
you purchased s coupon bond at a price of 1059. the coupon rate for the bond is 5% with face value of 1000. you sold the bond at 1066.13 one year later. how much us one year holding period return on the bond ? a-6% b-5.39% c-7% d-6.26 e-8.52%
on the issue date you bought a 20 year maturity 6% semiannual coupon Bond the bond...
on the issue date you bought a 20 year maturity 6% semiannual coupon Bond the bond then sold at YTM of 7% now four years later the similar Bond sells at YTM of 5% if you hold the bond now what is your realized rate of return for the 4-year holding.
On the issue date you bought a 20 year maturity, 6% semiannual coupon Bond. The bond...
On the issue date you bought a 20 year maturity, 6% semiannual coupon Bond. The bond then sold at YTM of 7%. Now four years later the similar Bond sells at YTM of 5%. If you hold the bond now, what is your realized rate of return for the 4-year holding.
Consider a bond that pays 6% annual coupon on a face value of $1000 and has...
Consider a bond that pays 6% annual coupon on a face value of $1000 and has 5 years to maturity. Suppose you buy the bond at a time when its yield to maturity is 10%. Assumer further that immediately after you buy the bond, the market interest rate YTM declines to 8%. You hold the bond for two years and sell it at the end of the second year when YTM is still 8%. a) Calculate the annualized two year...
Suppose that at t=0, you purchase a six year, 8% coupon bond paid annually that is...
Suppose that at t=0, you purchase a six year, 8% coupon bond paid annually that is priced to yield 9%. The face value of the bond is $1000. a) What will be your holding period return if you decide to hold the bond til its maturity and the market interest rate remains constant at 9% throughout your holding period of 6 years? b) What will be your holding period return if you decide to hold the bond til its maturity,...
You buy a bond with a par value of $1000 and a coupon rate of 8%...
You buy a bond with a par value of $1000 and a coupon rate of 8% with 18 coupons remaining. You hold the bond and receive 11 coupons. If the bond had a YTM of 8.2% when you bought it and 9.1% when you sold it, what was your annual holding period ROR?
On the issue date, you bought a 30-year maturity, 8% semi-annual coupon bond. The bond then...
On the issue date, you bought a 30-year maturity, 8% semi-annual coupon bond. The bond then sold at YTM of 7%. Now, five years later, the similar bond sells at YTM of 6%. If you hold the bond now, what is your realized rate of return for the 5-year holding period? (do not solve using excel)
If a bond has face value $1000, annual coupon rate of 10% is bought for $900...
If a bond has face value $1000, annual coupon rate of 10% is bought for $900 and sold 2 years later for $1100 what is holding period return? Annualized return?
Last year, you purchased a $1,000 par value bond with a 7% annual coupon and a...
Last year, you purchased a $1,000 par value bond with a 7% annual coupon and a 20-year maturity. At the time of the purchase, it had an expected YTM of 7.5%. After receiving the coupon, you sold the bond today for $920. What is your return rate in one year? (Hint: find out how much did you pay for the bond last year?) Select one: a. 5.37% b. 9.18% c. 3.27% d. 4.32% e. 10.64%
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT