Six years ago, you paid $569.50 to purchase a zero-coupon bond with face value $1000 maturity of 25 years. The yield to maturity on the bond has remained unchanged in the last six years. How much can you sell the bond for today? Multiple choice, $621.64, $651.89, $642.59, $600.45, $596.46
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Six years ago, you paid $569.50 to purchase a zero-coupon bond with face value $1000 maturity of 25 years. The yield to maturity on the bond has remained unchanged in the last six years. How much can you sell the bond for today? Multiple choice, $621.64, $651.89, $642.59, $600.45, $596.46
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- You purchased an annual interest coupon bond one year ago that now has six years remaining until maturity. The coupon rate of interest was 10% and par value was $1,000.What was the intrinsic value of the bond at the time you purchased it if the yield to maturity was 8%?a. $1,057.50.b. $1,075.50.c. $1,088.50.d. $1,104.13.Yesterday you paid $1000 for a 6% coupon, $1000 face value 5-year bond. It is callable at the end year 1(after it makes the first year-end coupon payment) for $1100. The annual discount rate on this bond has just fallen to 2%. What will this bond be selling for today? If you had intended to hold this bond until it matured, how much money did the call provision cost you in total over all five years?5) Three years ago, you purchased a bond for $974.69. The bond had three years to maturity, a coupon rate of 8%, paid annually, and a face value of $1,000. Each year, you reinvested all coupon interest at the prevailing reinvestment rate shown in the table below. Today is the bond's maturity date. What is your realized compound yield on the bond? Time Prevailing Reinvestment Rate 0 (purchase date) 6.0 % 1 7.2 % 2 9.4 % 3 (maturity date) 8.2 % A) 6.43% B) 7.96% C) 8.23% D) 8.97% E) 9.13% Provide an accurate answer with justification.
- Three years ago you purchased a 8% coupon bond that pays semiannual coupon payments for $987. What would be your bond equivalent yield if you sold the bond for current market price of $1,057?Three years ago you purchased a 8% coupon bond that pays semiannual coupon payments for $967. What would be your bond equivalent yield if you sold the bond for current market price of $1,047? Your bond equivalent yield, if you sold the bond for current market price, is%. (Round to two decimal places.)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.
- 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. 0.200Please provide complete step by step asnwer: You purchased an annual interest coupon bond one year ago that had six years remaining to maturity at that time. The coupon interest rate was 10%, and the par value was $1,000. At the time you purchased the bond, the yield to maturity was 8%. If you sold the bond after receiving the first interest payment and the yield to maturity continued to be 8%, your annual total rate of return on holding the bond for that year would have been A) 7.00%. B) 7.82%. C) 8.00%. D) 11.95%. E) None of the options are correct.You are given the following information: The price of a one-year zero coupon bond with par value of $100 is $96.35. • The second year 1-year forward rate is 7%. The second year 2-year forward is 9%. Calculate the price of a 3-year bond with par value of $100 and 5% annual coupons. (A) $93.0 (B) $94.5 (C) $96.5 (D) $97.5 (E) $99.0
- You purchased a 5-year, 6% 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 3.3% when you sold it. What is your holding period return on the bond? Enter your answer as a decimal, rounded to four decimal placesYou have just purchased a 15-year, P1,000 par value bond. The coupon rate on this bond is nine percent (9%) annually, with interest being paid each six months. If you expect to earn a 12 percent market rate of return on this bond, how much did you pay for it? a. P793.53 b. P950.75 c. P875.38 d. P642.765 years ago, you purchased a corporate bond for $942. At the time, the bond had a YTM of 9% and 9 years left to maturity. Today, the YTM on your bond is 6%. What is the current market price of your bond? Assume fixed annual coupon payments and a par value of $1,000. ( Round your answer to the nearest whole dollar) .