Six years ago, Rafael Sandino bought a 6%, 30-year corporate bond for $1,050. If he keeps the bond until maturity what will be his yield to maturity? Assume he receives interest checks semiannually. Round to the nearest hundredth of a percent.

Q: manuel bought a $100,000 bond with a 5.7% coupon for $92,470 when it had seven years remaining to…

A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of…

Q: Last year Janet purchased a $1,000 face value corporate bond with a 10% annual coupon rate and a…

A: Bonds are a type of debt security that represents a loan made by an investor to a borrower. In…

Q: Charles Wilson bought 10-year bonds issued by Harvest Foods five years ago for $932.30. The bonds…

A: In this case, we will take the time periods till the sale of the bond i.e. 5 years or 10 semi-annual…

Q: Jason buys a 15-year $100 par value 8% bond with semiannual coupons. The price assumes a nominal…

A: Bond value = 100 Coupon = 8% Semi annual Term = 15 years

Q: Kevin just purchased an 8-year semi-annual coupon bond with a par value of $1,000 and a coupon rate…

A: The general rule states that the intrinsic value of financial security is equal to a sum of the…

Q: Tristan Sandino sold a 4.85%, $1,000 bond 60 days after he had received the last interest payment.…

A: 1. Identify the bond's annual interest payment:o The bond's face value (principal) is $1,000.o The…

Q: the bond. If the current one-year interest rate on government bonds is 8 percent, then the price…

A: Time Period = 2 years Face Value = 5000 Coupon = Coupon Rate * Face Value = 6%*5000 = 300 Interest…

Q: A $8,500 bond had a coupon rate of 5.75% with interest paid semi-annually. Christopher purchased…

A: The valuation of a bond is done by discounting the future cash flows from such bond at the market…

Q: jorge cabrera paid $1,100 for a 15-year bond 10 years ago. the bond pays a coupon of 8 percent…

A: We will be using Excel function, =RATE to find realized yield. =RATE(nper,pmt,pv,FV,type,guess)

Q: ago remaining to maturity. Interest rates on similar obligations are now 10 percent. Assume bought…

A: Price of bond is the present value of coupon payments plus present value of the par value of the…

Q: Nick buys a $25 000, 5.4% bond with quarterly interest coupons, 3 years before maturity to yield 7%…

A: Bond Amount  $                 25,000.00 Coupon Rate 5.40% Yield 7% Time Period 3 Selling…

Q: Last year Janet purchased a $1,000 face value corporate bond with a 12% annual coupon rate and a…

A: The problem is asking for the rate of return Janet would have earned for the past year. The…

Q: On January 1, 2020, Janet buys a bond for P10,000 that will make coupon payments of P600 after each…

A: Data given: Coupon payment = P 600  Maturity value = P 10,000 Rate = 6% t= 2 years New interest rate…

Q: You purchased a bond at a price of $800. In 15 years when the bond matures, the bond will be worth…

A: A bond reveals the debt instrument that allows the issuer to raise funds from the public. The holder…

Q: Manuel bought a $100,000 bond with a 5.5%coupon for $92,450 when it had five years remaining to…

A: Face value (F) = $100000 Coupon (C) = (5.5% of 100000) / 2 = $2750 n = 5 years = 10 semiannual…

Q: A 3-year corporate bond is issued on 1/5/19 with a face value of $100 and a coupon of 2% pa (paid…

A: Here,

Q: A $6,000 bond had a coupon rate of 5.75% with interest paid semi-annually. Bianc purchased this bond…

A: Price of bond is the present value of coupon payment and present value of par value of bond taken on…

Q: Scooter wishes to sell a bond that has a face value of $912. The bond bears an interest rate of…

A: Quarterly bond interest payment = Face value of bond * Interest rate / 4 quarters in a year

Q: Last year Janet purchased a $1,000 face value corporate bond with a 9% annual coupon rate and a…

A: Face Value = 1000 Coupon = Coupon Rate × Face Value = 9% × 1000 = 90 Time Period (N) = 15 years YTM…

Q: Last year Janet purchased a $1,000 face value corporate bond with a 7% annual coupon rate and a…

A: Par value  of Bond = $1000Annual coupon rate =7% Annual coupon payment = 1000 *7% = $70 Yield to…

Q: An investor bought a zero-cupon bond with $1000 face value and 10 years to maturity for $630.35. She…

A: Zero Coupon Bond Face Value = $1000 YEars =10 Sold after 7 years  Remaining years = 10-7 = 3 years…

Q: Denis purchased a $10,000 face value Ontario Hydro Energy bond maturing in four years. The coupon…

A: Bond :— It is one of the type of securities that pays fixed periodic interest and face value amount…

Q: A $1,000 par value bond was issued 25 years ago at a 12 percent coupon rate. It currently has 15…

A: The objective of the question is to calculate the current price of the bond, the dollar profit based…

Q: Last year Janet purchased a $1,000 face value corporate bond with a 10% annual coupon rate and a…

A: given data par value = 1000 annual coupon = 1000 *10% = $100  yield to maturity = 9.35% JANET sold…

Q: Your yield for maturity on the Abner Bond is %

A: Bond Yield: It refers to the minimum return acceptable to the bondholers for investing in the…

Q: Today, Joe paid $12,000 for a bond which has $10,000 face value. The bond coupon rate is 10% per…

A: The yield to maturity is rate of return realized on the bond when held till maturity of bond period…

Q: Six years ago, Shirley Harper bought a 10-year bond that pays 8 percent semiannually for $1001.10.…

A: Particulars Values Annual coupon rate 8.00% Number of compounding periods 2.00 Holding period…

Q: Three years ago, Tristan bought a 30-year, 5.45%, $1,000 bond. The bond pays interest semiannually.…

A: In this problem we require to calculate the present worth of bond. We can calculate the present…

Q: John purchases a $600 bond that has 6 remaining semi-annual 7% coupon payments for $510. What would…

A: The Par Value of the Bond is $600 The remaining payments are 6 The coupon rate is 7% Price of the…

Q: % bond with semi-annual coupons. The price assumes a nominal yield of 6%, compounded semi-annually.…

A: Bill buys a 10 year,year,year,year, nominal yield 6% compounded semi- anually. The coupon which Bill…

Q: Anna bought a 13-year Connecticut state bond with face value $10,000 and a coupon rate of 4%. The…

A: Yield to maturity  ( YTM) = (Coupon value + (Face value - market value)/n) / ((Face value + Market…

Q: Jack purchases a 30-year bond with par-value F. The bond matures at par-value and pays semiannual…

A: Bond:- Bond is a type of debt instrument which a company issues to borrow funds. Bonds provide the…

Q: Last year Janet purchased a $1,000 face value corporate bond with a 12% annual coupon rate and a…

A: A bond refers to an instrument used to raise debt capital from non-traditional sources such as…

Q: Exactly two years ago today James purchased a ten-year $100,000 bond and the price he paid was P=…

A: Calculation of James total return (j2) over the 2 years holding period: * 10 year bond purchased…

Q: Joel Barber purchased a $1,000 bond for $985. The coupon rate of interest is 8.5 percent, and the…

A:

Q: One year ago , Igor purchased a newly issued 15- year bond for $1,000. The bond's coupon rate of…

A: Current yield refers to the annual income generated by a bond, expressed as a percentage of its…

Q: Nick buys a $25 000, 5.4% bond with quarterly interest coupons, 3 years before maturity, to yield…

A: Par value (FV) = $25,000 Coupon rate = 5.4% Coupon amount (C) = 25000*0.054/4 = $337.50 Years to…

Q: Hector just bought a 6.7 percent $1,000 bond that matures in 8 years, pays interest semiannually,…

A: The bond price refers to the current market value of a bond, representing the amount an investor…

Q: You purchased a newly issued 7% 40-year $1,000 bond 8 years ago. The bond pays interest each six…

A: The problem involves the determination of the bonds price. A bond is a fixed-income instrument and…