4 years ago you purchased a 12 year maturity, 3.3% coupon annual pay bond at a price of $90 per $100 of face value. Shortly after you purchased the bond, yields changed to 3.25%. If you sell the bond today at a price of $104 per $100 of face value, what is your annualized holding period return? Enter answer in percents, to two decimal places.
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- You purchased a 10-year, 5% annual-coupon bond with $1,000 par value. The yield to maturity at the time of purchase was 4%. You sold the bond after one year, right after receiving the first coupon payment. The bond's yield to maturity was 3.5% when you sold it. What is your holding period return on the bond? Enter your answer as a decimal, rounded to four decimal places.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).What is the value of a bond that matures in 17 years, makes an annual coupon payment of $50, and has a par value of $1,000? Assume a required rate of return of .0590. Instruction: Type your answer in dollars, and round to two decimal places
- A person purchased a 10-year, 5 percent coupon (semiannual payments) bond for $1,050.00, what is the (annual) yield-to-maturity? Show the steps in solving it using Financial Calculator.You purchased a 5-year annual-interest coupon bond year agoIts coupon interest rate was 6%, and its par value was $1,000 At the time you purchased the bond, the to maturity was 4%. If you sold the bond after receiving the first interest payment and the bond's yield to maturity had changed to 3%, your annual total rate of return on holding the bond for that year would have been approximately BLANK. Answer in percent form and round to 2 decimal places.You buy an 8.6% coupon, paid annually, 5-year maturity bond for $960. A year later, the bond price is $1,070. Face value of the bond is $1,000. a. What is the yield to maturity on the bond today? (Round your answer to 2 decimal places.) % b. What is the yield to maturity on the bond in one year? ( Round your answer to 2 decimal places.) c. What is your rate of return over the year? (Round your answer to 2 decimal places.)
- You purchased a coupon-bearing bond at $800 and resold it at $900 after exactly one year. If the coupon is $60 paid annually, what is the current yield of the bond? O A. 0.075 O B. 0.125 O C. 0.067 O D. 0.200Suppose you purchase a 10-year bond with 6.3% annual coupons. You hold the bond for four years, and sell it immediately after receiving the fourth coupon. If the bond's yield to maturity was 4.6% when you purchased and sold the bond, a. what cash flows will you pay and receive from your investment in the bond per $100 face value? b. what is the annual rate of return of your investment? Cash Flows - $113.39 $6.30 $6.30 $6.30 b. What is the annual rate of return of your investment? The annual rate of return of your investment is %. (Round to one decimal place.) $115.04You purchased a $1000 10-year bond that pays $95 annually. If the present value of the bond is $1050, what is the Yield to Maturity (YTM)?
- Today an investor purchases a 30-year bond (face value =\$1,000) for $627.73. The bond has a coupon rate of 4% and a yield to maturity of 7%. It pays coupons annually (not semiannually). The investor plans to hold the bond for 1 year. If the yield to maturity of the bond becomes 8% at the end of the year, what is the bond rate of return over the year?Assume that you purchase a 30-year $1,000 par value bond, with a 12% coupon, and a yield of 9%. Immediately after you purchase the bond, yields change to 8% and remain at that level to maturity. Assume that you hold the bond for 6 years and then sell it. Interest is paid annually. PART A: What is the price of the bond today? PART B: What is the price of the bond after 7 years? Part C: Now, calculate the realized horizon yield for this bond if you hold it for 7 years and then sell it.For a company, you plan to buy the following bond: Time to maturity, 6 years; coupon rate, 8%; Coupon payment, annual; Market interest rate, 8%; Face value, $1,000. Using Excel, calculate the duration of the bond. Using Excel, calculate the accumulated value of invested payment(or receipt) when you find market interest rate a year later is now 8%, 9%, and 7%, respectively. Using Excel, calculate geometric average rate of return (or realized compound return).