You buy a bond today with market price of $1200, with a coupon rate of 10%, par value of $1000, and maturity of 10 years. If you sell your bond at the end of 5th year at price of $1045 after receiving coupon payment of that year, what is the annual realized returns on your bond investment? Assume coupon payment are on annual basis. 10% 7.13% 5.34% 2.69% 6.04%

If investors holding our 4-year bonds (Bond #1) receive interest income annually forfour years, plus the face value of the bonds at maturity,a. If the expected rate of return on our bonds is 10%, what is the duration ofBond #1? Given the following projected income stream for Bond #1: year                                          coupon interest                           face value 1                                                100 2                                                 100 3                                                100 4                                                 100                                            1,000 total income in yeear 4              400                                           1,000

An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 12% annual coupon. Bond L matures in 15 years, while Bond S matures in 1 year. a. What will the value of the Bond L be if the going interest rate is 6%, 8%, and 13% ? Assume that only one more interest payment is to be made on Bond S at its maturity and that 15 more payments are to be made on Bond L. Round your answers to the nearest cent. 6% Bond L $ Bond S $ $ $ -Select- 8% $ $ 13% b. Why does the longer-term bond's price vary more than the price of the shorter-term bond when interest rates change? I. Long-term bonds have lower reinvestment rate risk than do short-term bonds. II. The change in price due to a change in the required rate of return increases as a bond's maturity decreases. III. Long-term bonds have greater interest rate risk than do short-term bonds. IV. The change in price due to a change in the required rate of return decreases as a bond's maturity increases. V. Long-term bonds have…

Assume the coupon rate is 10% issue at par $1000 and for 15 years. Let say the market interest rate increase to 15% during the life of the bond. a) What is the interest payment for this bond annually b) What is the interest payment on semi-annually c) How much should the investors pay for this bondi.e. the value

You buy a bond with a $1,000 par value today for a price of $875. The bond has 6 years to maturity and makes semiannual coupon payments at a rate of 9%. If you hold the bond to maturity, what was your effective annual yield? 11.98% 12.04% 12.34% 5.99%

What is the expected capital gains yield for each bond in each year? Round your answers to two decimal places.  See attached format Bond A has a 9% annual coupon, matures in 12 years, and has a $1,000 face value. Bond B has a 10% annual coupon, matures in 12 years, and has a $1,000 face value. Bond C has an 8% annual coupon, matures in 12 years, and has a $1,000 face value. Each bond has a yield to maturity of 9%.

1. A three-year bond with a $1,000 face-value and 10% coupon rate is sold for $1,000 today (Year 1).  If one year later (Year 2) the market interest rate decreases by 5%, then this bond will have a market price of $ ____ (round UP to the nearest integer) next year (Year 2).   2. True or False? The current interest rate on a 10-year coupon bond with face value = $1,000 and annual coupon rate = 3.25% is2.42%.  This implies the buyer of the bond will receive a $24.2 payment from the bond issuer every year before maturity while holding the bond.   3. A three-year bond with $1,000 face-value and 10% coupon rate is sold for $1,000 today (YEAR 1).  If one year later (Year 2) the market interest rate increases by 5%, then this bond will have a market price of $ ________ (round UP to the nearest integer) then (Year 2).

Consider a 30-year 8 percent bond, paying coupon semi-annually, and selling for $960. If the bond is sold 14 years later for $990, what is the investor’s holding period yield?

Consider the following bond where the coupons are paid annually, Bond CIBC Price $1020.50 YTM 4% Years to maturity 10 years What is the coupon rate of this bond? The face value of the bond is $1,000. Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response below. Enter your answer rounded to 2 DECIMAL PLACES.

You buy a bond today that has a coupon rate of 6.5%, with 10 years to maturity, and is trading at a YTM of 5.6% Assume that one year later, the bond is trading at a YTM of 5.0% What was the annual percentage return you earned by owning the bond? TIP: The annual return on a bond is equal to (Price(1) - P(0) + Coupon Payments)/P(0) See textbook, Section 6.4 Bond Rates of Return. Remember that when you calculate the value of the bond in one year, you will have received two coupons. Also, when you use the above formula, the prices of the bonds P(0) and P(1), as well as the coupons, should be calculated as dollars, not percentages of par value.