You purchased a $1000 face value zero-coupon bond one year ago for $260.3. The market interest rate is now 7.36 percent. If the bond had 19 years to maturity when you originally purchased it, what was your total return for the past year?Assume semiannual compounding. Answer as a percentage to two decimals (if you get -0.0435, you should answer -4.35).
Q: You buy a zero coupon bond at the beginning of the year that has a face value of $1,000, a YTM of 10…
A: Bonds are the financial instruments that represent the debt of an organization. Bonds are generally…
Q: The nominal rate of return is ______% earned by an investor in a bond that was purchased for $963,…
A: Bond It is an obligation security, where borrowers issue securities to fund-raise from financial…
Q: You purchase a 8 - year bond at $ 97 per $ 100 par value that pays a 7.3 % coupon per annum .…
A: The market value of a bond is the price at which you could sell it to another investor before it…
Q: Suppose you bought a bond with an annual coupon rate of 7.1 percent one year ago for $894. The bond…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
Q: Suppose you purchase a zero coupon bond with face value $1,000, maturing in 25 years, for $180. What…
A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv],…
Q: You bought a 20-year bond that has a coupon rate of 8 percent, pays coupons annually, and sells at a…
A: PMT = 8% of 1000 = 80 FV = 1000 rate = 6.5% N = 19 use PV function in Excel
Q: You purchase a bond with a coupon rate of 5.2 percent, a par value $1,000, and a clean price of…
A: The question is based on the concept of Financial Management.
Q: You purchased an annual-interest coupon bond one year ago with six years remaining to maturity at…
A: Coupon Interest Rate = 10% Face value = $1000 Coupon Amount =1000*10% = 100 Years = 6 years Yield…
Q: you have just purchase a outstanding non-callable 15 year bond with a par value of 1000. assume that…
A: par value =1000 Coupon =7.5% period =15 years YTm =6%
Q: You purchased a zero-coupon bond one year ago for $278.33. The market interest rate is now 8…
A: Data given:: Interest rate = 8% (compounding semiannually) Assumed Par value of bond = $1000…
Q: You purchased an annual interest coupon bond one year ago that had six years remaining to maturity…
A: Given, Number of years of maturity = 5Coupon = 10%*1000 = 100YTM = 8%
Q: Exactly 3 years ago, you bought a bond for $925. You just received your 6th coupon payment of $30,…
A: YTM is that rate of return which was actually earned by the investor on his investment amount
Q: On the issue date, you bought a 30-year maturity, 5% semi-annual coupon bond. The bond then sold at…
A: Calculation of realized return: Answer: Realized rate of return is 9.30%
Q: You purchase a bond with a coupon rate of 9.1 percent, a par value of $1,000, semiannual coupons,…
A: A bond is a borrowing security issued by the company to raise funds from the market by making an…
Q: A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon and sells for $1,095.…
A: Bond is one of debt security which is issue by corporates or government for financing. Bonds provide…
Q: If the current price of a 10-year 4.5% coupon bond which pays semiannually is $96.10, what is its…
A: Here, Face value (FV) = $100 Coupon rate = 4.5% semiannually Coupon payments (PMT) = (4.5% of 100)/2…
Q: Suppose you bought a bond with an annual coupon rate of 7.8 percent one year ago for $901. The bond…
A: Here, To Find: Part a. Total dollar return =? Part b. Total nominal rate of return =? Part c. Total…
Q: You purchased a $1,000 par value bond one year ago at a price of $1050 when it was issued. At the…
A: Bond is the security that provides coupon payment to the bondholder over the maturity period. The…
Q: You buy a 30-year zero coupon bond with a face value of $1000 and a 3% interest rate, compounded…
A: Given information : Time period of bond (years) 30 Face value $1,000 Interest rate 3%…
Q: A $1,000 bond has a coupon of 8 percent and matures after ten years. Assume that the bond pays…
A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…
Q: Two year ago, you purchased a 6% coupon bond with 10 years to maturity and had a yield to maturity…
A: Holding period return (HPR) is the return which is earned by the company by holding a security for a…
Q: You have just purchased an outstanding noncallable, 15-year bond with a par value of$1,000. Assume…
A: A financial instrument that has a fixed income and also helps a company to raise the funds for…
Q: he nominal rate of return is ______% earned by an investor in a bond that was purchased for $906,…
A: Nominal rate of return of the bond is the sum of coupon payment and price difference in bond Nominal…
Q: Suppose you bought a bond with an annual coupon rate of 5.2 percent one vear ago for $920. The bond…
A: Given Information: Bond bought one year ago = $920 Bond sales value today = $970 Annual coupon rate…
Q: You purchased an annual interest coupon bond one year ago that had six years remaining to maturity…
A: Bond:- A bond is considered as the fixed income instrument which carries loan amount that is made by…
Q: If you purchased a bond one year ago for $1000 and just sold it for $1100 after receiving the $50…
A: Purchase price (P0) = $1000 Selling price (P1) = $1100 Coupon payment (C) = $50 Inflation = i = 2.1%…
Q: what was your total return for the past year?
A: Information Provided: Price paid = $283.33 Interest rate = 9% Term = 15 years Compounding =…
Q: You wish to sell a bond that has a face valueof $5,000. The bond bears an interest rate of…
A: First, calculate the coupon amount:
Q: What is the current yield on the bond?
A: The yield can be calculated in MS – Excel using the Yield function The Semi-annual Yield is -0.50%
Q: Suppose you purchased a corporate bond with a 10-year maturity, a $1,000 par value, a 10% coupon…
A: Given: Particular Value Par Value 1000 Time to maturity 14 Coupon rate 10%
Q: A bond has a $1,000 face value, a market price of $1,045, and pays interest payments of $74.50 every…
A: We need to compute the coupon rate from below details : Face value of bond = $1000 Market price of…
Q: You purchased a bond for 725. The bond has a coupon rate of 8 percent, which is paid semiannually.…
A: Expected rate of return is Yield to maturity. Data given: ( Assumed all figures are in $) i) Face…
Q: A bond has a $1,000 face value, a market price of 1,036, and pays interest payments of $70 every…
A: Given details are : Face value = $1000 Market price = $1036 Interest payment every year = $70 From…
Q: The nominal rate of return is % earned by an investor in a bond that was purchased for $901, has an…
A: Given information: Purchase price : $901 Selling price : $1031 Face value : $1,000 Annual coupon :…
Q: Calculate the current price of a $1,000 par value bond that has a coupon rate of 9 percent, pays…
A: In the given question we are required to calculate current price of the bond. Data given is as…
Q: Suppose you bought a bond with an annual coupon rate of 8.9 percent one year ago for $912. The bond…
A: Bond is a financial instrument that is loan to business and its pays the fixed return to investors.
Q: You buy a 2-year bond with a(n) 8% coupon paid annually and $1,000 face value. You pay $960. After…
A: Data given: Face value = $ 1000 Coupon= 8% (annually) Purchase price= $960 Selling price= $1100…
Q: Suppose you bought a bond with an annual coupon rate of 8.4 percent one year ago for $960. The bond…
A: Total dollar return = [current bond price - last year price + coupon payment] = [$960 - $960 +…
Q: Three years ago you purchased a 7% coupon bond that pays semiannual coupon payments for $962. What…
A: Bond equivalent yield formulae is Face value-Purchase price/purchase price…
Q: Assuming a $1,000 face value, what was your total dollar return on this investment over the past…
A: Information Provided: Coupon rate = 4% Purchase price of bond = $800 Current price of bond = $850…
Q: Carrie's Clothes, Inc. has a seven-year bond outstanding that pays $50 annually. The face value of…
A: Ans 1. Bond's coupon rate is defined as the yield of coupon rate through the fixed income security…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 3 images
- You purchased a zero-coupon bond one year ago for $76.00. The market interest rate is now 9.0 percent. If the bond had 30 years to maturity when you originally purchased it, what was your total return for the past year? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Total return of past year %You purchased a zero-coupon bond one year ago for $283.33. The market interest rate is now 9 percent. Assume semiannual compounding. If the bond had 15 years to maturity when you originally purchased it, what was your total return for the past year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)You purchased a zero-coupon bond one year ago for $277.33. The market interest rate is now 8 percent. Assume semiannual compounding. If the bond had 17 years to maturity when you originally purchased it, what was your total return for the past year? Assume a par value of $1,000. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Total return for the past year %
- You purchased a zero-coupon bond one year ago for $278.33. The market interest rate is now 8 percent. Assume semiannual compounding. If the bond had 17 years to maturity when you originally purchased it, what was your total return for the past year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Total return for the past year %You purchased a zero-coupon bond one year ago for $278.33. The market interest rate is now 8 percent. Assume semiannual compounding. If the bond had 17 years to maturity when you originally purchased it, what was your total return for the past year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Total return for the past yearSuppose you bought a bond with an annual coupon rate of 8.4 percent one year ago for $960. The bond sells for $960 today. a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? b. What was your total nominal rate of return on this investment over the past year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. If the inflation rate last year was 2.5 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Total dollar return b. Nominal rate of return с. Real rate of return %
- Suppose that you buy a two-year 8.9% bond at its face value. a-1. What will be your total nominal return over the two years if inflation is 3.9% in the first year and 5.9% in the second? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) a-2. What will be your total real return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. Now suppose that the bond is a TIPS. What will be your total 2-year real and nominal returns? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)Suppose that for a price of $960 you purchase a 7-year Treasury bond that has a face value of $1,000 and a coupon rate of 4%. If you sell the bond one year later for $1,120, what was your rate of return for that one-year holding period? The rate of return for the one-year holding period was %. (Round your response to one decimal place.)Suppose you bought a bond with an annual coupon rate of 7.6 percent one year ago for $840. The bond sells for $885 today. a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? b. What was your total nominal rate of return on this investment over the past year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. If the inflation rate last year was 2.5 percent, what was your total real rate of return on this investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
- Suppose that you buy a two-year 7.3% bond at its face value. a-1. What will be your total nominal return over the two years if inflation is 2.3% in the first year and 4.3% in the second? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Nominal return a-2. What will be your real return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Real return % % Real return Nominal return b. Now suppose that the bond is a TIPS. What will be your total 2-year real and nominal returns? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 1%You buy a bond for $991 that has a coupon rate of 5.90% and a maturity of 10-years. A year later, the bond price is $1,176. (Assume a face value of $1,000 and annual coupon payments.) What is the new yield to maturity on the bond? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. What is your rate of return over the year? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.Suppose you bought a 5 year coupon bond with annual payments, par value $224 and coupon rate 6.9%. What is the market price of this bond three years later (2 years left of payments) if the current market yield is 4.0%? State your answer as a number rounded to 2 decimal points (e.g. if you get $7.991353, write 7.99).