Question

Four years earlier, Janice purchased a $1,000 face value corporate bond with a 6% annual coupon, and maturing in 10 years. At the time of the purchase, it had an expected yield to maturity of 8.76%. If Janice sold the bond today for $1,088.39, what rate of return would she have earned for the last four years? *Please show step by step without using PVIFA(YTM, n). Thank you.

Answer #1

**13.93%**

Step-1:Calculation of initial Price | |||||

Initial Price | =-pv(rate,nper,pmt,fv) | ||||

= $ 820.99 | |||||

Where, | |||||

rate | = | Discount rate | = | 8.76% | |

nper | = | Time | = | 10 | |

pmt | = | Coupon Payment | = | $ 60 | |

fv | = | Face Value | = | $ 1,000 | |

Step-2:Calculation of rate of return | |||||

Rate of return | =rate(nper,pmt,pv,fv) | ||||

= 13.93% |
|||||

Where, | |||||

nper | = | 4 | |||

pmt | = | $ 60 | |||

pv | = | $ -820.99 | |||

fv | = | $ 1,088.39 | |||

Four years earlier, Janice purchased a $1,000 face value
corporate bond with a 6% annual coupon, and maturing in 10 years.
At the time of the purchase, it had an expected yield to maturity
of 8.76%. If Janice sold the bond today for $1,088.39, what rate of
return would she have earned for the last four years?
Explain step by step process

3. Four years earlier, Janice purchased a $1,000 face value
corporate bond with a 6% annual coupon, and maturing in 10 years.
At the time of the purchase, it had an expected yield to maturity
of 8.76%. If Janice sold the bond today for $1,088.39, what rate of
return would she have earned for the last four years?

Last year Janet purchased a $1,000 face value corporate bond
with an 7% annual coupon rate and a 20-year maturity. At the time
of the purchase, it had an expected yield to maturity of 13.05%. If
Janet sold the bond today for $1,133.42, what rate of return would
she have earned for the past year?

Last year, Joan purchased a $1,000 face value corporate bond
with an 9% annual coupon rate and a 25-year maturity. At the time
of the purchase, it had an expected yield to maturity of 9.19%. If
Joan sold the bond today for $933.51, what rate of return would she
have earned for the past year? Round your answer to two decimal
places.

Last year, Joan purchased a $1,000 face value corporate bond
with an 8% annual coupon rate and a 25-year maturity. At the time
of the purchase, it had an expected yield to maturity of 9.08%. If
Joan sold the bond today for $1,106.92, what rate of return would
she have earned for the past year? 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 15-year maturity. At the time of the
purchase, it had an expected yield to maturity of 7.42%. if janet
sold the bond today for $991.19, what rate of return would she have
earned for the past year? round your answer to two decimal
places.

Last year, Joan purchased a $1,000 face value corporate bond
with an 9% annual coupon rate and a 20-year maturity. At the time
of the purchase, it had an expected yield to maturity of 11.5%. If
Joan sold the bond today for $1,105.62, what rate of return would
she have earned for the past year? 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 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.

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.

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 18 minutes ago

asked 18 minutes ago

asked 30 minutes ago

asked 32 minutes ago

asked 34 minutes ago

asked 36 minutes ago

asked 37 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago