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The current income is ?
The investor would experience a Gain, Loss, or Neither?
The total
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- 3. Assume you purchased a bond for $9,186. The bond pays $300 interest every six months. You sell the bond after 18 months for $10,000. Calculate the following: a. Income. b. Capital gain (or loss). c. Total return in dollars and as a percentage of the original investment. Review Only Click the icon to see the Worked Solution. a. The current income is $ (Round to the nearest dollar.) b. The capital gain (or loss) is $ (Enter a loss as a negative number and round to the nearest dollar.) c. The total return in dollars is $ (Round to the nearest dollar.) The total return as a percentage of the original investment is %. (Enter as a percentage and round to two decimal places.)Question 3 Investor Matt has $335,000 to invest in bonds. Bond A yields an average of 7.5% and the bond yields 7.0%. Matt requires that at least 4 times as much money be invested in bond A as in bond B. You must invest in these bonds to maximize his return. What is the maximum return? $ per year. Round to the nearest cent.Analysis and Application of Knowledge Rossiana Marie, Inc. lists a bond as Ross 9s34, and shows the price as selling for 88.875% of its face value. If your required return rate is 10%. would you buy one of these bonds in 2021? * 5 points Your answer Upload Solution: Rossiana Marie, Inc. lists a bond as Ross 9534, and shows 15 points the price as selling for 88.875% of its face value. If your required return rate is 10%, would you buy one of these bonds in 2021? 1 Add file Intal Corporation bonds have a coupon of 14%. pay interest semiannually. Spoints and mature in 7 years. Your required rate of return for such an investment is 10% annually. How much should you pay for a PHP1.000 Intal Corporation bond? Your answer Upload Solution: Intal Corporation bonds have a coupon of 14%. pay 10 points interest semiannually, and mature in 7 years. Your required rate of return for such an investment is 10% annually. How much should you pay for a PHP1.000 Intal Corporation bond?* 1 Add file
- Question 4 You open a brokerage account and purchases 1000 shares of PepsiCo (PEP) at $50 per share. You borrow $20,000 from your broker to help pay for the purchase. The interest rate on the loan is 10%. a) What is the margin in your account when you first purchase the share? b) If the share price falls to $40 per share by the end of the year, 1) What is the remaining margin in your account? 2) If the maintenance margin requirement is 30%, will you receive a margin call? 3) What is the rate of return on your investment? c) Consider the following limit order book for PEP stock. The last trade in the stock occurred at a price of $49. If you use a market order to buy 200 additional PEP shares, at what price will it be filled? Limit buy orders Price $48.75 $48.70 $48.65 $48.60 Shares 500 600 630 550 Limit sell orders Price $48.80 $48.85 $48.90 $48.95 Shares 200 500 400 1000Problem 5.13 You want to buy some bonds that will have a value of $1,000 at the end of 8 years. The bonds pay 4.50 percent interest, how much should you pay for them today? (If you solve this problem with algebra round intermediate calculations to 4 decimal places, in all cases round your final answer to the nearest penny.) Present value of bond Click if you would like to Show Work for this question: Open Show WorkCaleb buys a(n) 10.07% corporate bond with a current yield of 6.89%. When he sells the bond one year later, the current yield on the bond is 7.13 %. How much did Caleb make on this investment? Question content area bottom Part 1 The amount Caleb made on this investment is $ enter your response here. (Round to the nearest cent.)
- Present Value of $1 n/i 3.0% 1 0.97087 2 0.94260 3 0.91514 4 0.88849 5 0.86261 6 0.83748 7 0.81309 8 0.78941 0.76642 0.74409 0.55368 0.41199 10 20 30 Present Value of An Ordinary Annuity n/i 5.0% 6.0% 8.0% 3.0% 0.97087 4.0% 0.96154 1 0.95238 0.94340 0.92593 2 1.91347 1.88609 1.85941 1.83339 1.78326 3 2.77509 2.72325 2.67301 2.57710 2.48685 4 3.62990 3.54595 3.46511 3.31213 3.16987 5 4.57971 4.45182 4.32948 3.79079 4.21236 3.99271 5.07569 4.91732 4.62288 6 5.41719 5.24214 4.35526 7 6.23028 6.00205 5.78637 5.58238 5.20637 4.86842 8 7.01969 6.73274 6.46321 6.20979 5.74664 5.33493 9 7.78611 7.43533 7,10782 6.80169 6.24689 5.75902 10 8.53020 8.11090 7.72173 7.36009 6.71008 6.14457 11.46992 9.81815 8.51356 20 14.87747 3.59033 12.46221 30 19.60044 17.29203 15.37245 13.76483 11.25778 9.42691 2.82861 3.71710 4.0% 5.0% 6.0% 8.0% 10.0% 12.0% 0.94340 0.90909 0.89286 0.96154 0.95238 0.92593 0.92456 0.90703 0.89000 0.85734 0.82645 0.79719 0.88900 0.83962 0.79383 0.75131 0.71178 0.86384 0.82270…How much would you be prepared to pay for a $1,000 bond which comes due in 8 years and pays $100 interest annually assuming your required rate of return is 12% (pick closest answer)? a. $901 b. $1,032 c. $1,007 d. $962✩ Question Completion Status: 1 3 2 4 Question 5 5 Click Submit to complete this assessment. Calculate values out to at least 6 decimal places before converting to percentage terms. Sandeep Singh purchased Alltech's 10-year, 4% bonds at a par 2 years ago. He notes the price has changed to 101.40 and he calculates the change is yield as: O A. 2.10%. OB. 0.20% O C.0.17%. A Click Submit to complete this assessment. Q
- Check My Work eBook Harrimon Industries bonds have 4 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 8%. a. What is the yield to maturity at a current market price of 1. $819? Round your answer to two decimal places. % 2. $1,085? Round your answer to two decimal places. % b. Would you pay $819 for each bond if you thought that a "fair" market interest rate for such bonds was 13%-that is, if rd = 13%? I. You would not buy the bond as long as the yield to maturity at this price is less than the coupon rate on the bond. II. You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return. III. You would buy the bond as long as the yield to maturity at this price is less than your required rate of return. IV. You would buy the bond as long as the yield to maturity at this price equals your required rate of return. V. You would not buy the bond as long as the yield to maturity at…You're considering an investment in 10-year, $1,000 face value bonds that pay 8.50% annually and sell for $1,033.55. If you do make the purchase, how much will you earn? Select one: O a. 8.00% O b. 8.50% Oc. 7.59% Od 8.25% Oe. 8.86% Clear my choice A3 E D C You buy a bond for $1,050 that pays $30 interest every 6 months. It will reach maturity in 9 years at which time it will return its face value of $1000 plus the final $20 interest payment. What is the pre-tax annual rate of return on this bond? Estimate to 2 decimal places. # F4 4 Upload Choose a File R F $ V F5 5% T G F6 B Q Search F7 C 6 A Y H 7 F8 & U F9 8* J E M 88 - K LG F10 9 A I ( O < TAF F11 - L 0 ) F12 + P ; A : Prt Sc ScrLk = [ { /? Ins + Del Backspace ] } PgUp 1 Home NumLk Enter PgDn End Shift I 7 Home 44 Pause Break 8 10:33 AM 3/23/2023 2 ★ 5 1 End 9 PgUp 1 2