Two years ago on August 31st, Wojtek purchased a strip bond with a bond equivalent yield of 7.12315%. The bond matures on June 30th in seven years at a value of $75,000. If Wojtek sells the bond on August 31st of this year for $51,035.49, what is his capital gain? Note:-
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Finance
Two years ago on August 31st, Wojtek purchased a strip bond with a bond equivalent yield of 7.12315%. The bond matures on June 30th in seven years at a value of $75,000. If Wojtek sells the bond on August 31st of this year for $51,035.49, what is his
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- Caleb buys a(n) 10.07% corporate bond with a current yield of 6.89%. When he sells the bond one year later, the current yield on the bond is 7.13 %. How much did Caleb make on this investment? Question content area bottom Part 1 The amount Caleb made on this investment is $ enter your response here. (Round to the nearest cent.)6.-An investor received a promissory note for $120,000 at an interest rate of 8% on July 15 with maturity in 150 days. On October 20 of the same year he offers it to another investor who wishes to earn 10%. How much does the first investor receive for the promissory note? Note:The original exercise is in the image, it is in Spanish, but it is easy to understand. Another note:Please put the procedure explained, thank you very much for your attention bartleby expert!please solve this problem without using excel and show all steps. Question No.6 Mark purchases a 1000 par value 10-year bond with 6% annual coupons which will be redeemed for R. The purchase price is 1297.33 and the present value of the redemption value is 810.68. Early redemption of Mark's bond is not allowed. Erik purchases a 1000 par value 10-year bond with 6% annual coupons which will be redeemed for R. Early redemption of Erik's bond is allowed from the beginning of the 9th year. The price of the Erik's bond is Y. Calculate |Y-R. A. 81 В. 85 С. 89 D. 93 E. 97
- John purchases a bond with a $10,000 face value, a coupon rate of 6% and a 15 year maturity. Immediately before the 4th coupon payment, John sells the bond to Sally. At that time, the interest rate is 9%. What price can John expect to receive from Sally for the bond? Choose the answer within $50 of the following value. 8658 7958 8158 8058 None of the above 85582. An investor buys a bond for $5,000. The bond pays $125 interest every six months. After 18 months, the investor sells the bond for $4,839. Describe the types of income and/or loss the investor had. Review Only Click the icon to see the Worked Solution. The current income is $ (Round to the nearest dollar.) The investor would experience (1) in the amount of $ (Choose from the drop-down menu and enter a loss as a negative number rounded to the nearest dollar.) The total return on this investment is $ (Round to the nearest dollar.) (1) O a capital gain a capital loss neitherArjay purchases a bond, newly issued by Amalgamated Corporation, for $1,000. The bond pays $30 to its holder at the end of the first few years and pays $1,030 upon its maturity at the end of the 10 years. a. What are the principal amount, the term, the coupon rate, and the coupon payment for Arjay's bond? Instructions: Enter your responses as whole numbers. Principal amount: $ Term:Oyears Coupon rate: Coupon payment: $ b. After receiving the second coupon payment (at the end of the second year). Arjay decides to sell his bond in the bond market. What price can he expect for his bond if the one-year interest rate at that time is 1 percent? 6 percent? 8 percent? Instructions: Enter your responses as whole numbers. Expected price for the bond at: 1 percent $ 6 percent $ 8 percent $ c. Suppose that after two years, the price of Arjay's bond falls below $1,000, even though the market interest rate equals the coupon rate. One possible reason is that O there is good news about Amaigamated…
- Richard purchased a $1,000 bond issued by Salient Industries on January 2, 2022. The bond is due in 10 years and has an annual rate of 5.3%. How much cash should Richard expect to collect in total if he holds the bond until the maturity date? O $530 O $1,053 O $1,530 O $1,000 Save for Submit Answer3. Assume you purchased a bond for $9,186. The bond pays $300 interest every six months. You sell the bond after 18 months for $10,000. Calculate the following: a. Income. b. Capital gain (or loss). c. Total return in dollars and as a percentage of the original investment. Review Only Click the icon to see the Worked Solution. a. The current income is $ (Round to the nearest dollar.) b. The capital gain (or loss) is $ (Enter a loss as a negative number and round to the nearest dollar.) c. The total return in dollars is $ (Round to the nearest dollar.) The total return as a percentage of the original investment is %. (Enter as a percentage and round to two decimal places.)Six years ago, Shirley Harper bought a 10-year bond that pays 8 percent semiannually for $1001.10. Today, she sold it for $1,067.22. What is the realized yield on her investment? (Round to the nearest percent.) 6% O 12% none of these O 7% O 10%
- Albert purchased a bond with exactly 20 years to redemption. The bond pays annual coupons, in arrears, of 5% per annum and is redeemed at par. Albert, who is not liable to pay tax, will obtain a gross redemption yield of 6% per annum if he holds the bond utill redemption. (a) Calculate the purchase price Albert paid for the bond, per $100 nominal if his intention was to hold the bond utill redemption. (b) After exactly ten years, immediately after receiving payment of the coupon then due, Albert sells the bond to Vicky who is liable to pay income tax and capital gains tax at a rate of 30%. The bond is purchased by Vicky to provide a net rate of return of 6.5% per annum. (i) Calculate the price Vicky paid for the bond, per $100 nominal. (ii) Using trial-and-error followed by linear interpolation, calculate the annual effective rate of return, correct to 4 decimal places, earned by Albert during the period for which he held the bond.An investor bought a zero-cupon bond with $1000 face value and 10 years to maturity for $630.35. She sold it after 7 years. If the YTM when she sold it was 3,4%, what price did she sell it for?Stacy purchases a $60,000 bond for $57,500. The coupon rate is 6% per year payable quarterly. The bond has a 15 year life, at which time it is cased in for face value. The bank's interest is 4.8% per year compounded monthly. Stacy decides to sell the bond at the end of 8 years. What is the bond value at this time? work in terms of excel