Question

Part F.2

The following information is for solving Questions 49 to 52

On April 1^st, 2018, Yugo purchased a corporate bond of IJK Limited for its face value of $1,000. The bond pays a 4.5 percent coupon rate, which are paid semi-annually, and it will be maturing on April 1^st, 2028. On April 1^st, 2020, similar bonds are paying a coupon rate of 2.5 percent, and Yugo plans to sell his bond.

Question 49

What would be the dollar amount of each semi-annual coupon, Yugo would receive?

Question 49 options:

	$45.00
	$22.50
	$40.00
	$20.00
	None of the Above

Question 50

What would be the market price of the IJK bonds on April 1st, 2020, based on the market coupon rate?

Question 50 options:

	$1,038.78
	$1,000.00
	$990.59
	$995.15
	None of the Above

Question 51

What would be the capital gains/loss ($ dollar amount) would Yugo receive from selling the IJK bond?

Question 51 options:

	$38.78
	$0.00
	-$94.10
	-$48.50
	None of the Above

Question 52

What would be the capital gains/loss (% percent return) would Yugo receive from selling the IJK bond?

Question 52 options:

	-0.49%
	3.88%
	-0.94%
	0.00%
	None of the Above

Answer 1