Solve manually using formulas. Show complete solutions. San buys a 10-year bond of face (and redemption) amount of $1000, with 10% annual coupons at a price to yield an annual effective rate of 10%. The coupons are immediately reinvested at an annual effective rate of 8% once received. Immediately after receiving and reinvesting the 4th coupon, San sells the bond to Lee for a price that will yield an annual effective rate of 12% to Lee. Calculate the yield rate that San actually earns on his investment.

Carol plans to invest in a 12 year bond issued by Iris Ltd that pays a coupon of 4.8 percent. Coupon payments are made semi-annually. If the current market rate is 6.4 percent, what is the maximum amount Carol should be willing to pay for this bond? Assume it has a par value of $1000.

Dolores has a 5-year investment horizon. She is considering purchasing an 8-year, 6% coupon bond (annually). Coupon payments are paid every six months and the bond has a face value of €1,000. The bond sells to offer a yield to maturity of 6% and therefore the price is €1,000. Dolores expects to be able to reinvest in the coupon payments at an annual interest rate of 5%. At the end of the planned investment horizon, the bond will be selling to offer a yield to maturity of 5% annually. What is the interest-on-interest amount to the closest cent.

Louis bought a $100 par value 5-year bond with 10% semiannual coupons ata purchase price of $94. After receiving the 5th coupon, Louis sold the bond to Raymond. Find the yield to maturity for Raymond, if the realized yieldfor Louis is 12% compounded semiannually.

Isabel prefers to purchase bonds that contain a sinking fund provision to protect her from any potential loss of her invested capital. She purchased a 20-year, $20,000 sinking fund bond with a 12% coupon, paid seml-annually, for $18,900. If the company calls the bond after 10 years, and the call penaity requires a payment of $30 per $1,000 of face value, what are the yeilds to maturity and yeild to call on this bond? -previous answered questions were wrong, show calculations.

Jay purchased a Treasury bond with a coupon rate of 4.49% and face value of $100. The maturity date of the bond is 15 March 2029. (b) In fact, Yuri changes his plan and Jay plans to sell this bond on 7 January 2022. What was Jay's sale price (rounded to four decimal places)? Assume a yield of 3.02% p.a. compounded half - yearly. Question Answer a. 111.6359 b 110.8412 c. 109.1924 d .108.7396

Bones Ely owns a $1,000 face-value bond with three years to maturity. The bond makes annual interest payments of$75, the first to be made one year from today. The bond is currently priced at $975.48. Given an appropriate discount rate of 10%, should Bones hold or sell the bond?