Question

Suppose that you just bought a four-year $1000 coupon bond with a coupon rate of 5.7% when the market interest rate is 5.7%. One year later, the market interest rate falls to 3.7%. The rate of return earned on the bond during the year was nothing( )%. (Round your response to two decimal places.)

Answer #1

Rate of return was 11.28%

**Explanation:**

Suppose that you just bought a four-year $1,000 coupon bond
with a coupon rate of 6.4% when the market interest rate is 6.4%.
One year later, the market interest rate falls to
4.4%. The rate of return earned on the bond during the year was
x %.
(Round your response to two decimal places.)

Suppose that you just bought a four-year $1,000 coupon bond with a
coupon rate of 5.4% when the market interest rate is 5.4%. One year
later, the market interest rate falls to 3.4%.
The rate of return earned on the bond during the year was
_%

Suppose that you just bought a four-year $1,000 coupon bond with
a coupon rate of 5.4% when the market interest rate is 5.4%. One
year later, the market interest rate falls to 3.4%.
The rate of return earned on the bond during the year was _%

Suppose that you just bought a four-year $1 000 coupon bond
with a coupon rate of 6.9% when the market interest rate is 6.9%.
One year later, the market interest rate falls to 4.9%.
The rate of return earned on the bond during the year was
the ans is 12.36%, can yo please show me the formla how
it is arrived at

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

Suppose you bought a bond with an annual coupon of 6 percent one
year ago for $964. The bond sells for $938 today. If the inflation
rate last year was 3 percent and the face value of the bond is
$1000, what was your total real rate of return on this investment?
(Negative amount should be indicated by a minus sign. Enter your
answer as a percentage, omit the "%" sign in your response, and
round your answer to 2...

You bought a 10-year, 5% coupon bond for $1000, and sold it 1
year later for $1,100. What is the rate of return on your
investment if the bond pays interest annually? Semi-annually?

Bond Valuation
C) Suppose that Joan just bought a 15-year bond
for $902.71. The bond has a coupon rate equal to 7 percent, and
interest is paid semiannually. What is the bond’s yield to maturity
(YTM)? If Joan holds the bond for the next three years and its YTM
does not change during that period, what return will she earn each
year? What portion of the annual return represents capital gains
and what portion represents the current yield?
D) Suppose...

Karen just bought a 10 year, 6 percent coupon bond with 1000
par for 850. if she sells this bond two years later for 920, what
is the realized yield per year for her two year holding (with
semiannual interests)?

(Bond valuation) At the beginning of the year, you bought a
$1000 par value corporate bond with an annual coupon rate of 16
percent and a maturity date of 15 years. When you bought the bond,
it had an expected yield to maturity of 8 percent. Today the bond
sells for $1970.
a. What did you pay for the bond?
b. If you sold the bond at the end of the year, what would be
your one-period return on the...

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