suppose you purchae a 20 year treasury bond with a 5% annual coupon, initially trading at par. 8 years avger being issued the bonds yield to maturity has risen to 7% (Ear). if you hold the bond to maturity, the internal rate of return you will earn on your investment is? 7% 5% 6.43% 4.21% 3.23%
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Svtrik
suppose you purchae a 20 year treasury bond with a 5% annual coupon, initially trading at par. 8 years avger being issued the bonds yield to maturity has risen to 7% (Ear).
if you hold the bond to maturity, the
7%
5%
6.43%
4.21%
3.23%
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- Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh What is the price of a 2-year bond with a 6% coupon rate and face value of $100? The bond is trading at a yield of 7%. Coupons are paid semi-annually. Assume semi-annual compounding. Round your answer to the nearest cent (2 decimal places).Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh Fingen's 19-year, $1,000 par value bonds pay 14 percent interest annually. The market price of the bonds is $890 and the market's required yield to maturity on a comparable-risk bond is 17 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond?Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh Question: Which of the following bonds will have the lowest duration? A 5-year, 8% coupon bond A 7-year, 3% coupon bond A 5-year, 3% coupon bond A 7-year, zero coupon bond Question: A bond that has 5% coupon rate and 10-year maturity will be selling at a discount if: current yield is greater than 5%. dividend yield is at 5% dividend yield is lower than 5%. current yield is lower than 5%.
- Using the financial calculator BA II Plus what are the inputs to use to solve for would you buy a 1,000 FV bond selling for 700 10 yrs to maturity Pays a 5% coupon rate Annual required rate of return is 10% Bond pays coupon semi-annuallyFast pls solve this question correctly in 5 min pls I will give u like for sure Svtrik If the bond market expects a 10 percent yield, and ABC Ltd. pays coupon interest on its $1000 par value bond at eight percent semiannually, the discount rate that investors should apply in the calculation of ABC Ltd. bond price should be Question content area bottom Part 1 A. 5 percent. B. 4 percent. C. 8 percent. D. 10 percent.I need it by Calculations, answer is not here solved stepwise i need by formulas , im attaching the answer also so you get idea please provide stepwise solution .. Question you purcahsed a five year 6% annual coupon bond one yeta ago for 990 you sold the bond today when the market rate of return is 4.5% if the inflation rate for the past year was 2% what nominal rate of return did you earn on investment
- Question A If you buy a bond today at a 90% discount and sell it at a 20% premium in year 12, what is your holding period return per year? Assume that it is a 25-year semi-annual bond and pays coupon of 11%. Answers with excel formulas will be appreciated Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line.• Exercise ST-1 and ST-2 Problems: 5, 8, 9, 10, 13, and 15* Problem 15: bond X has 20 years to maturity, a 9% annual coupon, and a $1,000 face value. The required rate of return is 10%. Suppose you want to buy the bond and you plan to hold the bond for 5 years. You expect that in 5 years, the yield to maturity on a 15-year bond with similar risk will be priced to yield 8.5%. How much would you like to pay for the bond today? 1,000 90 20 90 90 90 90 1 5 19 PV3 =1,041.52 (I/YR=8.5%, PMT=90, N=15, FV=1,000) PV, = 987.87 (I/YR=10%, PMT=90, N=5, FV=1,041.52) Answer: Step 1: figure out what should be the fair value of the bond after 5 years (PVs) Step 2: figure out what should be the fair value of the bond now (PVo)Dog Suppose you purchase a 10-year bond with 6.6% 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 5.4% 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?
- HW#3 Consider a coupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is currently selling for $1,150 and has 8 years to maturity. What is the bond’s yield to maturity? A 10-year, 7% coupon bond with a face value of $1,000 is currently selling for $871.65. Compute your rate of return if you sell the bond next year for $880.10. Consider the decision to purchase either a 5-year corporate bond or a 5-year municipal bond. The corporate bond is a 12% annual coupon bond with a par value of $1,000. It is currently yielding 5%. The municipal bond has an 8.5% annual coupon and a par value of $1,000. It is currently yielding 7%. Which of the two bonds would be more beneficial to you? Assume that your marginal tax rate is 35%. Calculate the duration of a $1,000 6% coupon bond with three years to maturity. Assume that all market interest rates are 7%. Consider the bond in the previous question. Calculate the expected price change if interest rates drop to 6.75% using the…eston Help A firm raises capital by selling $28,000 worth of debt with flotation costs equal to 1% of its par value. If the debt matures in 15 years and has an annual coupon interest rate of 7%, what is the bond's YTM? The bond's YTM is %. (Round to two decimal places.) Тext dia Librai l Calculat r Resource Enter your answer in the answer box and then click Check Answer. ic Study Check Answer Clear All es All parts showing nunication Tools > This course (Introduction to Finance (EIN-101-D02) Distance Spring 2021) is hased on 7utter/Smart- Drincinles of Managerial Finance Rrief Re 4/1. P Type here to search insertHow much should you pay for a 10 % annual coupon bond, with a $1,000 face value, which matures in 3 years? Assume a required return of 5%. A. $1136.16 B. $136.16 C. $863.84 D. $1000
