Question

**One year ago, an investor purchased a 10-year, $1,000
par value, 8% semiannual coupon bond with an 8% yield to maturity.
Now, one year later, interest rates remain unchanged at 8%. If the
investor sells the bond today (immediately after receiving the
second coupon payment, and with no transaction costs), he will
have:**

**A. a capital gain of $80.**

**B. a capital loss of $80.**

**C. no capital gain or loss.**

Answer #1

An investor bought a 20-year bond at par with a semiannual
coupon and a 3% yield-to-maturity. One year later, due to a decline
in interest rates, she sold the bond at a 2% yield to maturity.
What was her capital gain or loss?
15.7%
8.6%
18.7%
16.4%
14.3%

One year ago Clark Company issued a 10-year, 13% semiannual
coupon bond at its par value of $1,000. Currently, the bond can be
called in 6 years at a price of $1,065, and it now sells for
$1,230. What is the bond's nominal yield to maturity? Round your
answer to two decimal places. % What is the bond's nominal yield to
call? Round your answer to two decimal places. % Would an investor
be more likely to earn the YTM...

A 10-year, 12 % semiannual coupon bond with a par value of
$1,000 may be called in 4 years, at a call price of $1,060. The
bond sells for $1,300. (Assume the bond has just been
issued).
a. What is the bond’s yields to maturity? (15 points)
b. What is the bond’s current yield? (15 points)
c. What is the bond’s capital gain or loss yield in the first year
in percent? (15 points)
d. What is the bond’s yield...

Alex purchased a $1,000 par value bond one year ago at a price
of $1,016. At the time of purchase, the bond had 12 years to
maturity and a 5 percent, semiannual coupon. Today, the bond has a
yield to maturity of 5.35 percent. What is his realized yield as of
today?
0.52 percent
0.66 percent
1.19 percent
1.32 percent
2.60 percent

In Excel with formulas--
A 10-year, 12 % semiannual coupon bond with a par value of
$1,000 may be called in 7 years, at a call price of $1,100. The
bond sells for $1,500. (Assume the bond has just been
issued).
a. What is the bond’s yields to maturity?
b. What is the bond’s current yield?
c. What is the bond’s capital gain or loss yield in the first
year?
d. What is the bond’s yield to call?

A bond with a par value of $1,000 and a coupon rate of 8%
(semiannual coupon) has a current yield of 7%. What is its yield to
maturity? The bond has 8 years to maturity.

A 10-year corporate bond has an annual coupon of 9% and a par
value of $1,000. The bond is currently selling at a premium of 20%
to par ($1,200). Which of the following statements is more likely
to be CORRECT?
a. The bond’s yield
to maturity is 9%.
b. The bond’s current
yield is 9%.
c. IF the bond’s
yield to maturity remains constant over the next year, an investor
owning the bond will earn a capital GAIN of 11%...

A 15-year, semiannual coupon bond sells for $985.72. The bond
has a par value of $1,000 and a yield to maturity of 6.57 percent.
What is the bond's coupon rate?

You purchased a $1,000 par value 20-year 4% coupon bond
with semi-annual payments for $1,000. Immediately after the
purchase, interest rates increased and the yield to maturity and
coupon reinvestment rate increased to 6%. (the coupons themselves
stayed at 4%) Interest rates and the yield to maturity remain at 6%
and you sell the bond 5 years later, having reinvested the coupons
at 6%. How much is in your account (proceeds from bond sale and
value of all coupons after...

Last year Carson Industries issued a 10-year, 15% semiannual
coupon bond at its par value of $1,000. Currently, the bond can be
called in 6 years at a price of $1,075 and it sells for $1,280.
What is the bond's nominal yield to maturity?What is the bond's
nominal yield to call?Would an investor be more likely to earn the
YTM or the YTC? What is the current yield? Is this yield affected
by whether the bond is likely to be...

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