Question

Solve using excel A bond was originally bought at a price of $985 dollars is now sold for $1000. |

The investor realized a holding period rate of return of 5%. |

1. What was total amount of the bond's coupon payments received during bond ownership? |

2. How many coupon payments did the bond investor receive? |

A. 1 |

B. 2 |

C. 3 |

D. You cannot tell with the info given |

Answer #1

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)

(Bond valuation) At the beginning of the year, you bought a
$1000 par value corporate bond with an annual coupon rate of 16
percent and a maturity date of 15 years. When you bought the bond,
it had an expected yield to maturity of 8 percent. Today the bond
sells for $1970.
a. What did you pay for the bond?
b. If you sold the bond at the end of the year, what would be
your one-period return on the...

At the beginning of the? year, you bought a ?$1000 par value
corporate bond with an annual coupon rate of 13 percent and a
maturity date of 12 years. When you bought the? bond, it had an
expected yield to maturity of 12 percent. Today the bond sells for
?$1200.
a. What did you pay for the? bond?
b. If you sold the bond at the end of the? year, what would be
your? one-period return on the? investment? Assume...

At the beginning of the year, you bought a $1000 par value
corporate bond with an annual coupon rate of
15 percent and a maturity date of 13 years. When you bought the
bond, it had an expected yield to maturity of
16 percent. Today the bond sells for $1060.
a. What did you pay for the bond?
b. If you sold the bond at the end of the year, what would be
your one-period return on the investment? Assume...

Please show how to solve using EXCEL ONLY
EXCEL INSTRUCTIONS ONLY
8. David Hoffman purchases a $1,000 20‐year
bond with an
8 percent coupon rate (annual payments). Yields on comparable
bonds are 10 percent. David expects that, 2 years from
now, yields on comparable bonds will have declined to 9
percent.
Find his expected yield, assuming the bond is sold
in 2 years.

You just bought a newly issued bond which has a face value of
$1,000 and pays its coupon once annually. Its coupon rate is 5%,
maturity is 20 years and the yield to maturity for the bond is
currently 8%.
Do you expect the bond price to change in the future when the
yield stays at 8%? Why or why not? Explain. (No calculation is
necessary.)
2 marks)
Calculate what the bond price would be in one year if its...

Please answer each step to get to the final answer without using
excel. Thank you!
Suppose that an investor with a 10-year investment horizon is
considering purchasing a 20-year 8% coupon bond selling for $900.
The par value of the bond is $1000. The original YTM on the bond is
10%, but the investor expects that he can reinvest the coupon
payments at an annual interest rate of 7% and that at the end of
the investment horizon this 10-year...

INVESTMENTS
PLEASE, GIVE THE SOLUTION WITHOUT USING EXCEL & FINANCIAL
CALCULATOR
Assume you bought $1000 of the bond below on October
7/2015.
Company
As of 6-Oct-2015
OVERVIEW
Price:
104.76
Coupon (%):
3.000
Maturity Date:
1-Oct-2017
Yield to Maturity (%):
1.279
Current Yield (%):
2.864
Fitch Ratings:
A
Coupon Payment Frequency:
Semi-Annual
First Coupon Date:
1-Apr-2013
Type:
Corporate
Callable:
No
1. When was the last coupon paid before your purchase?
2. What is the convention to count days for this bond?...

Consider the following three bonds which you bought today at the
listed purchase prices.
Bond A: Purchase price $15,000 with Face Value of $20,000 in 1
years.
Bond B: a perpetuity has a price of $1250 and an annual coupon
payment of $25
Bond C: Purchase price of $15000, Face Value of $20,000 in 10
years and pays annual coupon payments of $25
Assume 1 year from now you want to sell these bonds: For each of
these bonds calculate...

1. Price of a bond today: your company wants to raise $600
million by selling bonds. The company has chosen to issue 25-year
semi-annual $1,000 par value bonds with a coupon of 5.5%, rated at
BBB with yield of 6.5%.
a. What will be the price of each
bond? Show calculator inputs, fully labeled.
b. How many bonds will the company
need to sell? Show work.
c. What cash flows does an investor in
this bond receive while she owns...

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