You bought a six-year bond issued by Oriole Corp. four years ago. At that time, you paid $972.33 for the bond. The bond pays a coupon rate of 7.975 percent, and coupon payments are made semiannually. Currently, the bond is priced at $1,034.56, What yield can you expect to earn on this bond if you sell it today? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual yield I %

I. An investor purchases a bond worth Rp. 100 million, with a 15% interest tax on the bond. The investor is faced with two different cases. Case 1: Annual inflation = 0.5%, nominal interest rate = 3.17% / yearCase 2: Annual inflation = 2.96%, nominal interest rate = 5.63% / year a. In which cases do the investors receive the highest real returns? Explain.  b. In which case did the investor pay the highest taxes? Explain.  c. If you can choose, which is the best case for investors to buy bonds? Explain.

You will be paying $12,800 a year in tuition expenses at the end of the next two years. Bonds currently yield 8% Required: a. What are the present value and duration of your obligation? (Do not round intermediate calculations. Round "Present value" to 2 decimal places and "Duration" to 4 decimal places) Present value Duration Answer is complete and correct. S 22.825 79 14000 years b. What is the duration of a zero-coupon bond that would immunize your obligation and its future redemption value? (Do not round intermediate calculations. Round "Duration to 4 decimal places and "Future redemption value to 2 decimal places.) Duration Future redemption value Answer is not complete. 14800 years

You will be paying $12,200 a year in tuition expenses at the end of the next two years. Bonds currently yield 9%. Required: a. What are the present value and duration of your obligation? (Do not round intermediate calculations. Round "Present value" to 2 decimal places and "Duration" to 4 decimal places.) b. What is the duration of a zero-coupon bond that would immunize your obligation and its future redemption value? (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Future redemption value" to 2 decimal places.) c. Suppose you buy a zero-coupon bond with value and duration equal to your obligation. Now suppose that rates immediately increase to 10%. What happens to your net position, that is, to the difference between the value of the bond and that of your tuition obligation? (Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.) d. Suppose you buy a zero-coupon bond with value…

Suppose that today’s date is April 15. A bond with a 9% coupon paid semiannually every January 15 and July 15 is quoted as selling at an ask price of 101.143. If you buy the bond from a dealer today, what price will you pay for it? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

(Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 7 percent interest annually and have 14 years until maturity. You can purchase the bond for $915. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 7 percent? a. The yield to maturity on the Saleemi bonds is %. (Round to two decimal places.)

You purchase a 3 - year corporate bond, which has a coupon rate of 8%, paid annually. Its par value is $ 1,000. If the YTM is 6%, what is the duration of the bond? A. 2.83 years B. 2.92 years C. 2.67 years D. 2.79 years

Suppose that today’s date is April 15. A bond with a 7% coupon paid semiannually every January 15 and July 15 is quoted as selling at an ask price of 101.5000 percent of par. If you buy the bond from a dealer today, what price will you pay for it? Note: Round your answer to 2 decimal places.

3. You bought a bond (par-$1,000) three years ago for $1,040. The bond is now selling for $990. It also paid $40 in interest per year (i.e., 4% coupon rate), which you reinvest in the bond. Calculate the realized rate of return (annualized) on this bond. Interest on this bond is paid semiannually.

(Bondholders' expected rate of return) Zenith Co.'s bonds mature in 8 years and pay 9 percent interest annually. If you purchase the bonds for $700, what is your expected rate of return? www Your expected rate of return is%. (Round to two decimal places.)