Question

You buy a 8.500% semi-annual bond maturing in exactly 24 years at 109.9760. You hold the...

You buy a 8.500% semi-annual bond maturing in exactly 24 years at 109.9760. You hold the bond for 15 years. Then you sell the bond at 116.1402.

Your holding period yield on this investment is

please show work

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Hence, Holding period yield is 7.93% (3.965%*2)

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You buy a 10.750% semi-annual bond maturing in exactly 7 years at 93.0630. You hold the...
You buy a 10.750% semi-annual bond maturing in exactly 7 years at 93.0630. You hold the bond for 3 years. Then you sell the bond at 98.6980. Your holding period yield on this investment is: Round to 5 decimals
You have a $22,000 semi-annual 1.000% bond maturing in exactly 18 years. If it is priced...
You have a $22,000 semi-annual 1.000% bond maturing in exactly 18 years. If it is priced to yield 8.250% then the bond has a market value of $ XXX and the income yield is XXX%
Consider a five-year bond with a face value of $500,000 and semi-annual coupon of $19,000. The...
Consider a five-year bond with a face value of $500,000 and semi-annual coupon of $19,000. The market yield is 7.00% p.a. (a) What is the price of the bond? (b) We hold the bond for 1.5 years and then sell it at a yield of 7.50% p.a. What is the selling price and what is the holding period yield p.a. on this investment? (Show all your workings and round off your result to two decimals)
Suppose you purchase a 8-year, 6% semi-annual coupon bond for 89.153. Immediately after you purchase the...
Suppose you purchase a 8-year, 6% semi-annual coupon bond for 89.153. Immediately after you purchase the bond, the yield for equivalently risk bonds decreases by 100 basis points. However, instead of holding the bond until maturity, you plan to hold the bond for 3 years and then sell it. All coupons will be reinvested at the prevailing yield on equivalently risky bonds. What will be your return on this investment in this scenario? Round your answer to three decimal places.
What is the holding period yield on a 30 year 7% bond that we buy for...
What is the holding period yield on a 30 year 7% bond that we buy for $1020. We sell the bond in 4 years for $1040. (Please show work)
Suppose you purchase a​ 10-year bond with6.7%annual coupons. You hold the bond for four​ years, and...
Suppose you purchase a​ 10-year bond with6.7%annual coupons. You hold the bond for four​ years, and sell it immediately after receiving the fourth coupon. If the​ bond's yield to maturity was 5.5% when you purchased and sold the​ bond, a. What cash flows will you pay and receive from your investment in the bond per $ 100 face​value? b. What is the annual rate of return of your​ investment?
suppose you buy a 15 year 4% bond for $940. What is the yield to maturity...
suppose you buy a 15 year 4% bond for $940. What is the yield to maturity for this bond? State answer as a percentage please and show work. Semi annual bond
What would be the current price of a bond maturing in 20 years if it promised...
What would be the current price of a bond maturing in 20 years if it promised annual coupons of $60 and has a 7% yield to maturity? Assume a par value of $1000 PLEASE SHOW ALL WORK What is the current yield of the bond in the problem above? PLEASE SHOW ALL WORK
You will earn the YTM on a bond if you hold the bond until maturity and...
You will earn the YTM on a bond if you hold the bond until maturity and if interest rates don't change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY). a. Suppose that today you buy a bond with an annual coupon rate of 6 percent for $1,150. The bond has 20 years to maturity. What rate of return do you expect to earn on your investment? (Do not...
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.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT