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You purchased a 20-year, 7.8 percent coupon bond that was priced at $980 NINE years ago. The bond paid monthly coupons. Right after you purchased the bond, interest rates fell by 240 bps and remained unchanged since then. You just liquidated your position by selling the bond at the end of your 9-year horizon. Calculate the (annual)
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- At the beginning of the year, you bought a $1,000 par value corporate bond with an annual coupon rate of 8 percent and a maturity date of 19 years. When you bought the bond, it had an expected yield to maturity of 13 percent. Today the bond sells for $ 760. 1. What did you pay for the bond? 2. If you sold the bond at the end of the year, what would be your one-period return on the investment? Assume that you did not receive any interest payment during the holding period.Suppose you purchase a 10-year bond with 6% 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 4.01% 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 internal rate of return of your investment? Note: Assume annual compounding. The cash flow at time 1-3 is $ (Round to the nearest cent. Enter a cash outflow as a negative number.) (Round to the nearest cent. Enter a cash outflow as a negative number.) The cash outflow at time 0 is $ The total cash flow at time 4 (after the fourth coupon) is $ negative number.) b. What is the internal rate of return of your investment? (Round to the nearest cent. Enter a cash outflow as aSuppose you bought a bond with an annual coupon of 6 percent one year ago for $1,170. The bond sells for $1,235 today. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? What was your total nominal rate of return on this investment over the past year?
- Assume that all interest rates are certain - all investors know how interest rates will change over time. Two years ago, you purchased a 10-year bond with a face value of $1,000.00 and annual coupons of 7.4%. When you purchased the bond, the one year spot rate was 6.3% and the two year spot rate was 9.8%. You reinvested the first coupon payments at the prevailing rate and then sold the bond after two years at a yield to maturity of 10.9%. If your realised compound yield on the bond was 14.4%, what was the bond's initial purchase price? O a. $747.53 O b. $749.59 O c. $751.34 O d. $755.36 O e. $753.70 O f. $746.65 O g. $754.38 Oh. $757.80You bought one of Colton Manufacturing Co.'s 6 percent coupon bonds one year ago for $1,040. These bonds make annual payments and mature eleven years from now. Suppose you decide to sell your bonds today when the required return on the bonds is 5 percent. The par value is $1,000. If the inflation rate was 2 percent over the past year, what would be your total real return on the investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Total real return %You bought one of Great White Shark Repellant Company's 8.4 percent coupon bonds one year ago for $1,048. These bonds make annual payments and mature 11 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 7 percent. The bonds have a par value of $1,000. If the inflation rate was 2.6 percent over the past year, what was your total real return on investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Total real return %
- Assume that all interest rates are certain - all investors know how interest rates will change over time. Three years ago, you purchased a 10-year bond with a face value of $1,000.00 and annual coupons of 7.5%. One year after you purchased the bond, the one year spot rate was 5.9% and the two year spot rate was 8.9%. You reinvested the first two coupon payments at the prevailing rates and then sold the bond after three years at a yield to maturity of 10.4%. If your realised compound yield on the bond was 14.8%, what was the bond's initial purchase price? a. $723.62 O b. $732.73 O c. $721.58 O d. $729.73 O e. $727.24 O f. $722.25 g. $730.75 Oh. $724.97Suppose you purchase a ten-year bond with 12% 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 10.64% 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 internal rate of return of your investment? Note: Assume annual compounding. a. What cash flows will you pay and receive from your investment in the bond per $100 face value? The cash flow at time 1-3 is $ (Round to the nearest cent. Enter a cash outflow as a negative number.) The cash outflow at time 0 is $ number.) (Round to the nearest cent. Enter a cash outflow as a negative The total cash flow at time 4 (after the fourth coupon) is $. (Round to the nearest cent. Enter a cash outflow as a negative number.) b. What is the internal rate of return of your investment? The internal rate of return of your investment is %. (Round to two decimal…At the beginning of the year, you bought a $1,000 par value corporate bond with a 6 percent annual coupon rate and a 10-year maturity date. Whenyou bought the bond, it had an expected yield to maturity of 8 percent. Today the bond sells for $1,060. a. What did you pay for the bond?b. If you sold the bond at the end of the year, what would be your one-periodreturn on the investment?
- You purchased an 11-year semi-annual interest coupon bond one year ago. Its coupon rate was 7%, and its par value was $1,000. At the time you purchased the bond, the yield to maturity was 6%. If you sold the bond after one year and the bond's yield to maturity had changed to 5% after one year, your annual total rate of return on holding the bond for that year would have beensuppose you bought a $1,000 face value bond with a coupon rate of 5.6 percent one year ago. the purchase price was $987.50. you sold the bond today for $994.20. if the inflation rate last year was 2.6 percent, what was your exact real rate of return on this investment?Suppose you purchase a 10-year bond with 6.1 % 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 4.7 % 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?