Question

John has purchased a bond for $950 that had 4% coupon and semiannual interest payments. He...

John has purchased a bond for $950 that had 4% coupon and semiannual interest payments. He has sold the bond after 6 months and earned a total return of 5% on this investment.The face values of bonds are $1,000

a) How much coupon did John get?

b) At what price, did John sell the bond?

Homework Answers

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
1) how much should you pay for a $1000 bond with 6% coupon, annual payments, and...
1) how much should you pay for a $1000 bond with 6% coupon, annual payments, and 16 years to maturity if the interested rate is 6%? 2) how much should you pay for a $1000 zero coupon bond with 5 years to maturity if the interest rate is 5%? 3) what is the rate of return for an investor who pays $1061 for a 3 year bond with an annual coupon payment of 6% and sells the bond 1 year...
the current market price of Jones Corporation's 4 percent, 5-year bonds is $950. Coupon interest payments...
the current market price of Jones Corporation's 4 percent, 5-year bonds is $950. Coupon interest payments are semiannual, and the par value is equal to $1,000. What is the YTM? If the bond in the prior problem can be called in two years for a call price of $1,100, then what is the yield to call (YTC)?
A corporation has a bond outstanding that makes semiannual coupon interest payments. The coupon rate for...
A corporation has a bond outstanding that makes semiannual coupon interest payments. The coupon rate for the bond is 3.2 percent, the YTM (yield to maturity) is 4.5 percent, the par value is $1,000 and the bond has 12 years to maturity. If interest rates remain unchanged, what will the price of the bond be in 3 years?
Bond A has a face value of $1,000, makes semiannual coupon payments of $30 and will...
Bond A has a face value of $1,000, makes semiannual coupon payments of $30 and will mature in 7 years. It currently sells for $949.63. Bond B is a corporate bond whose price is quoted at 109.98 this afternoon. It will mature in exactly 15 years. Bonds A and B are priced so that they each have the same yield. What is the YTM for these two bonds, and what is the coupon rate for Bond B?
You are considering a corporate bond with 5% coupon bonds with semiannual payments and a yield...
You are considering a corporate bond with 5% coupon bonds with semiannual payments and a yield to maturity of 6% . The bonds mature in 8 years. What is the market price per bond if the face value is $1,000?
ABC, Inc. offers a bond with a coupon of 9 percent with semiannual payments and a...
ABC, Inc. offers a bond with a coupon of 9 percent with semiannual payments and a yield to maturity of 7.75 percent. The bonds mature in 14 years. What is the market price of a $1,000 face value bond?
Tidewater finshing has a 7percent bond, which a face value of 1,000 and semiannual coupon. The...
Tidewater finshing has a 7percent bond, which a face value of 1,000 and semiannual coupon. The bonds will be repaid in 8 years and will be sold at par. Given this, which one of the following statement is correct A. if market interest rates will decline to 3% this bond will sell at premium B.there is a total of 8 payments at 70 dollars each C. the bond is worth less today than when it was issued D. the bonds...
Jerry just purchased a bond paying semiannual interest for a price of $1,000. Yields on bonds...
Jerry just purchased a bond paying semiannual interest for a price of $1,000. Yields on bonds of similar risk are 10.2%. The bond has a face value of $1,000. Based on this​ information, the coupon rate of the bond​ is: ​(Select the best choice​ below.) A. The coupon rate of the bond is 9.2% B. The coupon rate of the bond is 8.7% C. The coupon rate of the bond is 11.2% D.The coupon rate of the bond is 10.2%....
bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 6% coupon rate,...
bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 6% coupon rate, payable semiannually. The bonds mature in 7 years, have a face value of $1,000, and a yield to maturity of 9.5%. What is the price of the bonds? Round your answer to the nearest cent. $
soca co. offers a 9 percent coupon bond with semiannual payments and a yield to maturity...
soca co. offers a 9 percent coupon bond with semiannual payments and a yield to maturity of 7.50 percent. The bonds mature in 18 years. What is the market price of a $1,000 face value bond?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT