Question

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)

Answer #1

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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 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.

28.You purchase a Chrysler bond with a par value of $1,000 that
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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
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an equation that can be solved to find your total realised return
over the 4-year holding period.

ABC HAS A BOND WITH A 10-YEAR MATURITY, SEMI ANNUAL COUPON OF 8%
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You purchase a 8 - year bond for $1,015. It pays a semi-annual
coupon payment of $40. You expect to sell the bond in 2 years. You
estimate that similar bonds will be priced to yield 7% at the time
of the sale. If you can reinvest the coupon payments at 6%
annually, what is your expected total return for the 2 - year
holding period?
1)
9.23%
2)
5.73%
3)
7.58%
4)
8.71%
5)
6.59%

Austin Corp. issued a non-callable bond that has 14 years to
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a. What did you pay for the bond?
b. If you sold the bond at the end of the year, what would be
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(Bond valuation) At the beginning of the year, you bought a $1,000
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b. If you sold the bond at the end of the year, what would be
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At the beginning of the? year, you bought a ?$1000 par value
corporate bond with an annual coupon rate of 13 percent and a
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b. If you sold the bond at the end of the? year, what would be
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