Question

Last year Janet purchased a $1,000 face value corporate bond with an 10% annual coupon rate and a 15-year maturity. At the time of the purchase, it had an expected yield to maturity of 7.95%. If Janet sold the bond today for $1,104.19, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.

Answer #1

Selling Price = 1104.19

Face Value = 1000

Annual coupon amount = 0.1*1000 = 100

Number of payments = 15

YTM = 0.0795

Price of a bond = Present value of all annual coupons and face value discounted at ytm.

Price of bond = 100/(1+0.0795)^1 + 100/(1+0.0795)^2 + 100/(1+0.0795)^3 + 100/(1+0.0795)^4 + 100/(1+0.0795)^5 + ........ 100/(1+0.0795)^15 + 1000/(1+0.0795)^15

Price of bond = Buying Price = 1176.01

Coupon Received = 0.1 * 1000 = 100

Rate of return = ((Selling Price + coupon received - Buying Price )/ Buying Price )* 100

= (( 1104.19 + 100 - 1176.01)/1176.01) *100

**= 2.40% Answer**

Last year Janet purchased a $1,000 face value corporate bond
with a 10% annual coupon rate and a 20-year maturity. At the time
of the purchase, it had an expected yield to maturity of 9.26%. If
Janet sold the bond today for $1,008.42, what rate of return would
she have earned for the past year? Do not round intermediate
calculations. Round your answer to two decimal places.

Last year Janet purchased a $1,000 face value corporate bond
with an 10% annual coupon rate and a 10-year maturity. At the time
of the purchase, it had an expected yield to maturity of 12.45%. If
Janet sold the bond today for $982.47, what rate of return would
she have earned for the past year? Do not round intermediate
calculations. Round your answer to two decimal places.

Last year Janet purchased a $1,000 face value corporate bond
with a 10% annual coupon rate and a 10-year maturity. At the time
of the purchase, it had an expected yield to maturity of 9.85%. If
Janet sold the bond today for $941.57, what rate of return would
she have earned for the past year? Do not round intermediate
calculations. Round your answer to two decimal places.
%

Last year Janet purchased a $1,000 face value corporate bond
with an 10% annual coupon rate and a 25-year maturity. At the time
of the purchase, it had an expected yield to maturity of 11.27%. If
Janet sold the bond today for $927.53, what rate of return would
she have earned for the past year? Do not round intermediate
calculations. Round your answer to two decimal places.
______ %

. Last year Janet purchased a $1,000 face value corporate bond
with an 10% annual coupon rate and a 20-year maturity. At the time
of the purchase, it had an expected yield to maturity of 13.08%. If
Janet sold the bond today for $1,051.15, what rate of return would
she have earned for the past year? Do not round intermediate
calculations. Round your answer to two decimal places.

Last year Janet purchased a $1,000 face value corporate bond
with an 12% annual coupon rate and a 25-year maturity. At the time
of the purchase, it had an expected yield to maturity of 10.2%. If
Janet sold the bond today for $1,140.91, what rate of return would
she have earned for the past year? Do not round intermediate
calculations. Round your answer to two decimal places.

Last year Janet purchased a $1,000 face value corporate bond
with a 7% annual coupon rate and a 20-year maturity. At the time of
the purchase, it had an expected yield to maturity of 6.89%. If
Janet sold the bond today for $1,100.22, what rate of return would
she have earned for the past year? Do not round intermediate
calculations. Round your answer to two decimal places.
%

Last year Janet purchased a $1,000 face value corporate bond
with an 7% annual coupon rate and a 10-year maturity. At the time
of the purchase, it had an expected yield to maturity of 12.5%. If
Janet sold the bond today for $1,137.79, what rate of return would
she have earned for the past year? Do not round intermediate
calculations. Round your answer to two decimal places.
________%

Last year Janet purchased a $1,000 face value corporate bond
with an 11% annual coupon rate and a 15-year maturity. At the time
of the purchase, it had an expected yield to maturity of 11.72%. If
Janet sold the bond today for $1,119.27, what rate of return would
she have earned for the past year? Do not round intermediate
calculations. Round your answer to two decimal places.
%

Last year Janet purchased a $1,000 face value corporate bond
with an 7% annual coupon rate and a 25-year maturity. At the time
of the purchase, it had an expected yield to maturity of 12.54%. If
Janet sold the bond today for $1,091.2, what rate of return would
she have earned for the past year? Do not round intermediate
calculations. Round your answer to two decimal places.

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 14 minutes ago

asked 14 minutes ago

asked 46 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago