Question

A bond had a price of $946.86 at the beginning of the year and a price of $984.56 at the end of the year. The bond's par value is $1,000 and its coupon rate is 6.3 percent. What was the percentage return on the bond for the year? A. 6.45 B. 3.83% C. 9.31% D.10.64% E. 11.34%

Answer #1

(Bond valuation) At the beginning of the year, you bought a
$ 1,000 par value corporate bond with an annual coupon rate of 14
percent and a maturity date of 15 years. When you bought the bond,
it had an expected yield to maturity of 16 percent. Today the bond
sells for $ 1,000. 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...

Last year, you purchased a $1,000 par value bond with a 7%
annual coupon and a 20-year maturity. At the time of the purchase,
it had an expected YTM of 7.5%. After receiving the coupon, you
sold the bond today for $920. What is your return rate in one year?
(Hint: find out how much did you pay for the bond last year?)
Select one: a. 5.37% b. 9.18% c. 3.27% d. 4.32% e. 10.64%

You own a 15-year, $ 1,000 par value bond paying 7.5 percent
interest annually. The market price of the bond is $ 900, and
your required rate of return is 10 percent. a. Compute the bond's
expected rate of return. b. Determine the value of the bond to
you, given your required rate of return. c. Should you sell the
bond or continue to own it? a. What is the expected rate of return
of the 15-year, $ 1,000 par...

A 15-year bond with a face value of $1,000 currently sells for
$1050. Which of the following statements is CORRECT?
a. The bond's current yield exceeds its coupon rate
b. the bond's current yield is less than its yield to
maturity
c. the bond's yield to maturity is less than its coupon rate
d. the bond's current yield is equal to its coupon rate
e. if the yield to maturity stays constant until the bond
matures, the bond's price will...

Mike considers to buy 1,000 bonds. The bond is semi-annual
coupon bond with 10-year maturity, $1,000 par value bond with a 10
percent annual coupon, and 10 percent annual required rate of
return? How much does it cost now if he wants to receive all the
coupon payments and par values during the 10-year period? What
would be the value of the bond if, just after it had been issued,
the expected inflation rate rose by 3 percentage points, causing...

Harry considers to buy 1,000 bonds. The bond is semi-annual
coupon bond with 10-year maturity, $1,000 par value bond with a 10
percent annual coupon, and 10 percent annual required rate of
return? How much does it cost now if he wants to receive all the
coupon payments and par values during the 10-year period? What
would be the value of the bond if, just after it had been issued,
the expected inflation rate rose by 3 percentage points, causing...

Suppose a five-year, $ 1 000 bond with annual coupons has a
price of $ 897.41 and a yield to maturity of 6.3 %. What is the
bond's coupon rate?
The bond's coupon rate is
nothing %.
(Enter your response as a percent rounded to three decimal
places.)

(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...

(Bond valuation) At the beginning of the year, you bought a $1,000
per value corporate bond with an annual coupon rate of 8 percent
and a maturity date of 15 years. When you bought the bond, it had
an expected yield to maturity of 11 percent. Today the bond sells
for $920.
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...

1. If 9-year T-bonds have a yield of 2.9%, 9-year A-rated
corporate bonds yield 4.8%, the maturity risk premium on all 9-year
bonds is 1.2%, and A-rated corporate bonds have a 0.6% liquidity
premium versus a zero liquidity premium for T-bonds, what is the
default risk premium on the corporate bond?
2. You project that you will need $50,000 in 9 years to put a
down payment on a home on a conventional mortgage program. You plan
to save for...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 22 minutes ago

asked 34 minutes ago

asked 38 minutes ago

asked 40 minutes ago

asked 52 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago