1. Bond-A is a 15-year Zero Coupon Bond with a par value of 1000. Tom buys 1000 pieces of Bond-A when the market yield is 8.24%. He holds the bond for 10 years and sells the bond when the market yield on Bond A is 9.25%. (Note: compounding is on an annual basis) (a) Calculate the total dollar return from Tom's investment in Bond-A (10 marks) (b) Calculate the annualized holding period yield or total return for the period he has held Bond-A (5 marks)

You purchase a 3 - year corporate bond, which has a coupon rate of 8%, paid annually. Its par value is $ 1,000. If the YTM is 6%, what is the duration of the bond? A. 2.83 years B. 2.92 years C. 2.67 years D. 2.79 years

Logan bought a bond that matures in 10 years and pays 6% interest. The bond had a face value of $10 000. He received 10 annual payments of $1358.68. This bond was . a. mortgage bond b. zero-coupon bond c. Eurobond d. an amortising bond

Mar’s Corporation bonds with par of $1,000 mature in 15 years and pays 6.5% coupon interest. The market price of the bonds is $990 and your required rate of return is 8%. (a)  Calculate the bond’s expected rate of return. (b)  Calculate the value of the bond to you, given your required rate of return. (c)  Should you purchase the bond? (State a reason for your answer.)

a) What is the value of a 10 year, 8.2% coupon bond with semiannual coupons.Assume the par value of the bond is $100 and it is redeemable at par. The interest rate (nominal, converted semiannually) is 10.6%. b) An investor purchased a bond that pays $5 coupons annually at the end of everyyear for five years. The purchase price was $100 and it was redeemed at par after fiveyears. If the annual effective inflation rate over the time period was 3%, calculate the realrate of return earned by the investor on this bond.

(Bond valuation) You own a 10-year, $1,000 par value bond paying 8 percent interest annually. The market price of the bond is $825, and your required rate of return is 12 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 10-year, $1,000 par value bond paying 8 percent interest annually if its market price is $825? % (Round to two decimal places.)

An investor buys a $1000 face value bond paying a semi-annual coupon at 9% APR compounded semi-annually for $1500.  Four years later, just after receiving his 8th coupon payment, the investor sells the bond for $924.00.  What realized yield did the investor earn, stated as an APR with semi-annual compounding?

the following features: • Coupon rate of interest (paid annually): 10 percent • Principal: $1,000 • Term to maturity: 8 years a. What will the holder receive when the bond matures? |-Select- b. If the current rate of interest on comparable debt is 7 percent, what should be the price of this bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. Would you expect the firm to call this bond? Why? -Select- v, since the bond is selling for a-Select- v. c. If the bond has a sinking fund that requires the firm to set aside annually with a trustee sufficient funds to retire the entire issue at maturity, how much must the firm remit each year for eight years if the funds earn 7 percent annually and there is $80 million outstanding? Use Appendix C to answer the question. Round your answer to the nearest dollar.

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Suppose the investor sells his bonds before maturity and uses some of the proceeds to purchase a zero-coupon T-Bill with a $100 face value and 6-month maturity. What is the effective annual rate (EAR) if it was purchased for $95.52?