Question

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)

Homework Answers

Answer #1

Please thumbs up :)

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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.
ABC HAS A BOND WITH A 10-YEAR MATURITY, SEMI ANNUAL COUPON OF 8% HAS A PRICE...
ABC HAS A BOND WITH A 10-YEAR MATURITY, SEMI ANNUAL COUPON OF 8% HAS A PRICE OF 933.00 WHAT IS YTM ON THIS BOND? **PLEASE USE EXCEL**
28.You purchase a Chrysler bond with a par value of $1,000 that carries a semi-annual coupon...
28.You purchase a Chrysler bond with a par value of $1,000 that carries a semi-annual coupon rate of 4%, has a 5-year maturity and sells at par. (7 points) a.What will be the bond’s price one year later if the YTM has decreased by 1%? b.If you sell the bond at the price (a) above, what was is your HPR (Holding Period Return)? Round your answer to two (2) decimal places. 29.The Nickelodeon Manufacturing Corp. has a series of $1,000...
You purchase a bond issued by XYZ Ltd, which is a 8% semi-annual coupon bond with...
You purchase a bond issued by XYZ Ltd, which is a 8% semi-annual coupon bond with a term to maturity of 10 years, and currently trading at par. Four years later, immediately after receiving the eighth coupon payment, you sell the bond to your best friend. You best friend’s nominal yield to maturity is 7% per annum. Write down an equation that can be solved to find your total realised return over the 4-year holding period.
​(Bond valuation​) At the beginning of the​ year, you bought a $1000 par value corporate bond...
​(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​...
(Bond valuation) At the beginning of the year, you bought a $1,000 per value corporate bond...
(Bond valuation) At the beginning of the year, you bought a $1,000 per value corporate bond with an annual coupon rate of 8 percent and a maturity date of 15 years. When you bought the bond, it had an expected yield to maturity of 11 percent. Today the bond sells for $920. 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...
Austin Corp. issued a non-callable bond that has 14 years to maturity, an 8% semi-annual coupon,...
Austin Corp. issued a non-callable bond that has 14 years to maturity, an 8% semi-annual coupon, and a $1,000 par value. your required return on the Austin Corp. Bond is 9%, if you buy it, you plan to hold it for 9 years. You (and the market) have expectations that in 9 years, the yield to maturity on a 5-year bond with similar risk will be 9.5%. How much should you be willing to pay for the Austin Corp. Bond...
At the beginning of the? year, you bought a ?$1000 par value corporate bond with an...
At the beginning of the? year, you bought a ?$1000 par value corporate bond with an annual coupon rate of 13 percent and a maturity date of 12 years. When you bought the? bond, it had an expected yield to maturity of 12 percent. Today the bond sells for ?$1200. 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? investment? Assume...
At the beginning of the​ year, you bought a $1000 par value corporate bond with an...
At the beginning of the​ year, you bought a $1000 par value corporate bond with an annual coupon rate of 15 percent and a maturity date of 13 years. When you bought the​ bond, it had an expected yield to maturity of 16 percent. Today the bond sells for ​$1060. 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​ investment? Assume...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT