Mr. Yap bought a bond having a face value of Php 1,000.00 for Php 970.00. The bond rate was 14% nominal and dividends were made to him semiannually for a total of 7 years. At the end of the seventh year, he sold the bond to a friend at a price that resulted a yield of 16% nominal on his investment. What was the selling price

Mr. Yap bought a bond having a face value of Php 1,000.00 for Php 970.00. The bond rate was 14% nominal and dividends were made to him semiannually for a total of 7 years. At the end of the seventh year, he sold the bond to a friend at a price that resulted a yield of 16% nominal on his investment. What was the selling price

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Mr. Arturo bought a bond having a face value of Php3500 for Php3300. The bond rate was 16% nominal and interest payments were made to him semiannually for a total of seven years. At the end of the 7th year, he sold the bond to a friend at a price that resulted a yield of 20% nominal on his investment what was the selling price?
Gerry is an entry-level engineer at Boeing Aerospace in California. He took a financial risk and bought a bond from a different corporation that had defaulted on its interest payments. The bond bought at 4240, is an 8% $10,000 bond with interest payable quarterly. The bond paid no interest for the first 3 years after Gerry bought it. If interest was paid for the next 7 years, and then Gerry was able to resell the bond for $11,000, what rate of return did he make on the investment? Assume the bond is scheduled to mature 18 years after he bought it. Plz do fast asap, urgent..
Last year Janet purchased a $1,000 face value corporate bond with a 10% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected yield to maturity of 12.51%. If Janet sold the bond today for $979.07, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places. %
Hector just bought a 6.7 percent $1,000 bond that matures in 8 years, pays interest semiannually, and has a yield to maturity of 6.10 percent. How much did Hector pay for this bond?
Mr. Weber purchases a $4000 bond, that pays interest at 12-5% and is redeemable at 95 in 12 years. He bought the bond at a price to yield j13-10.25% it held until maturity. After 6 years, he sells the bond to another investor who will yield 2-10.05% if held until maturity. Approximate Mr. Weber's yield on his investment over the 6-year period, using method of averages? Answer
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.
Last year Janet purchased a $1,000 face value corporate bond with a 7% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected yield to maturity of 8.1%. If Janet sold the bond today for $1,086.18, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.
Jenna bought a bond that was issued by Sherlock Watson Industries (SWI) three years ago. The bond has a $1,000 maturity value, a coupon rate equal to 9%, a market rate (yield to maturity) of 10%, and it matures in 17 years. Interest is paid every six months; the next interest payment is scheduled six months from today.
Adrian invested $14,000 in a savings bond that matures today for $41,270. How many years did the bond grow if the annual rate of change is 6.190017%. For full marks your answer(s) should be rounded to the nearest whole year.
Last year Janet purchased a $1,000 face value corporate bond with a 10% annual coupon rate and a 15-year maturity. At the time of the purchase, it had an expected yield to maturity of 10.34 %. If Janet sold the bond today for $1,164.56, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places. %
Please give me the detailed process Rejean purchased a 20-year 6 percent real return bond for $15 000 and the CPI has increased by 1.5 percent in the first year. What interest payment will Rejean receive in the second year?

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