you have just purchased a 15 year, 1000 par value bond. the coupon rate on this bond is nine percent annually, with interest being paid each six months. if you expect to earn a 12 percent market rate of return on this bond, how much did you pay for it?
Q: A bond with 5 years to maturity and a coupon rate of 6% has a par or face value of $20,000. Interest…
A: Cash Flow at the time of maturity = $20000 Interest (Annuity) annually = ($20000 * 6%) =…
Q: A company issued a bond a few years ago that has a face value equal to $1,000 and pays investors $30…
A: Given information: Par value : $1000 Semi-annual coupon payment : $30 time to maturity : 8 years…
Q: 5 years ago, you purchased a $1,000 bond for $950. The bond coupon rate is 6% per year paid monthly,…
A: Maturity of bond means that the bond value will be paid back to the lender of the money. When bonds…
Q: Diane Carter is interested in buying a five-year zero coupon bond with a face value of $1,000. She…
A: Given, Face value of bond is $1000 Interest rate is 9%
Q: You purchased an annual-interest coupon bond one year ago with six years remaining to maturity at…
A: Coupon Interest Rate = 10% Face value = $1000 Coupon Amount =1000*10% = 100 Years = 6 years Yield…
Q: Consider a bond with a face value of $1,000. The coupon is paid semiannually and the market interest…
A: 1. ANNUAL COMPOUNDING YEARS 10 COUPON RATE 6.00% PMT (COUPON AMOUNT) $60 INTEREST RATE…
Q: Suppose a bond is priced at $1108, has 18 years remaining until maturity, and has a 8% coupon, paid…
A: Coupons are paid on bonds periodically according to stated interest rate on the bonds and frequency…
Q: What's the value to you of a $1,000 face-value bond with an 8% semi-annual coupon rate and 7 years…
A: Face value of the bond = $1,000 Semiannual coupon amount (C) = $40 (i.e. $1000 * 0.08 / 2)…
Q: What's the value to you of a $1,000 face-value bond with an 10% annual coupon rate and 6 years to…
A: Given, face value of bond is $1000 Annual coupon 10% Term to maturity is 6 years.
Q: A bond has a $1,000 face value, a market price of $1,115, and pays interest payments of $90 every…
A: Face value = 1000 Market price = 1115 Interest payment = 90
Q: You purchased an annual interest coupon bond one year ago that had six years remaining to maturity…
A: Given, Number of years of maturity = 5Coupon = 10%*1000 = 100YTM = 8%
Q: An investor has a bond with a 10% coupon, 40 years maturity with a par value of $1,000 paying 80…
A: Par Value = 1000 Time Period = 80 semi annual periods Coupon = 50 Interest Rate = 10%/2 = 5% per…
Q: You want to buy a 9 year bond with a maturity value of $3,000, and you wish to get a return of 5.5%…
A: Using excel PV function
Q: You have just purchased a 15-year, P1,000 par value bond. The coupon rate on this bond is nine…
A: The bond price can be calculated as the present value of bond cash flows.
Q: Consider a bond with a face value of $1000. The coupon payment is made semiannually and the yield on…
A: Price of bond = [ PVAIF (Yield rate , periods) * Interest ] + [ PVAF (Yield rate , Period) *…
Q: You are considering investing in a security that matures in 10 years with a par value of $1,000.…
A: Please find the answer to the above question below:
Q: An investor is considering a discount bond that promises a payment of $14,400 in two years. If…
A: Bonds are issued by the company to meet the financial requirements of the company without losing its…
Q: Suppose the coupon rate is 10% issue at par $1000 and for 15 years. Let say the market interest rate…
A: Bonds are the debt instrument issued by an entity to fulfill its debt requirement from the market.…
Q: What's the value to you of a $1,000 face-value bond with an 11% annual coupon rate and 11 years to…
A: As per the given information: Face value - $1,000 Coupon rate - 11% Years to maturity - 11 years…
Q: You are considering the purchase of a new issue of bonds which will mature in 10 years. The coupon…
A: Using Excel PV function
Q: rate of return of the bond? W
A: Bond price refers to the amount which an investor is willing to pay at the time of existence of…
Q: Two year ago, you purchased a 6% coupon bond with 10 years to maturity and had a yield to maturity…
A: Holding period return (HPR) is the return which is earned by the company by holding a security for a…
Q: You buy a semiannually paying coupon bond with a face value of $1,000 and a coupon rate of 8%. The…
A: Given, Face value of bond is $1000 Coupon rate is 8% Time to maturity is 20 years.
Q: What's the value to you of a $1,000 face-value bond with an 7% semi-annual coupon rate and 9 years…
A: Face value or maturity value (M) = $1,000 Semiannual coupon amount (C) = $35 ($1000 * 0.07 / 2)…
Q: 4. You bought a 10-year, 5% coupon bond for $1,000 and sold it 1 year later for $1,100. What is…
A: The holding period rate of return would be calculated by using the following formula:Rate of…
Q: If you want to receive $500 every three months for 10 years by investing in a bond that has a face…
A: The Bond's current price is the present value of its expected future cash flow, which is discounted…
Q: You purchased an annual interest coupon bond one year ago that had six years remaining to maturity…
A: Bond:- A bond is considered as the fixed income instrument which carries loan amount that is made by…
Q: Suppose you bought a bond with an annual coupon of 7 percent one year ago for $970. The bond sells…
A: Real Rate of Return= [(1+Nominal)/(1+Inflation)]-1
Q: You buy a 15-year 10 percent annual coupon bond at par value, $1,000. You sell the bond two years…
A: In this question, it is required that the Holding Period Return is calculated. Holding period return…
Q: You purchase a bond for $825. It pays a semi-annual coupon of 4 percent, and the bond matures after…
A: Yield-to-Maturity refers to return rate that a bond will effectively generate each year if bond is…
Q: PW of coupons is
A: Bonds are financial instruments which provide fixed returns to its holders. Bonds actually have a…
Q: Suppose you purchase a 10-year bond with 6% annual coupons. You hold the bond for four years, and…
A: A bond is a debt issued by the company whereby it has to pay regular coupons to the investor and…
Q: What's the value to you of a $1,000 face-value bond with an 12% semi-annual coupon rate and 7 years…
A: Given The face value of bond is $1000 Coupon rate is 12% Term to maturity is 7 years
Q: Consider a bond with a face value of $1,000. The coupon is paid semiannually and the market interest…
A: Using PV function of excel
Q: icipal bonds were issued with a face value of $100,000 and a coupon rate Eer, and coupon payments…
A: In this we to find value of bond as present value of coupon payments plus present value of par…
Q: You own a 20-year, $1,000 par value bond paying 7 percent interest annually. The market price of the…
A: In the above question we require to compute the Bond's expected rate of return. We can solve this…
Q: A bond that matures in 11 years has a $1,000 par value. The annual coupon interest rate is 8 percent…
A: Here, Par Value of Bond is $1,000 Annual Coupon Interest Rate is 8% Yield to Maturity (r) is 15%…
Q: You purchase a bond with a coupon rate of 6.9 percent and a clean price of $905. Assume a par value…
A: A dirty price is a pricing quote, which is the cost of a bond that includes accrued interest based…
Q: Consider a 30-year 8 percent bond, paying coupon semi-annually, and selling for $960. If the bond is…
A: HOLDING PERIOD YEILD FORMULA: holding period yield=incom generated+selling price-purchase…
Q: A twenty-year government bond with a face value of 120$ makes annual coupon payments of 6% and…
A: A bond is a fixed-income security that reflects a lender's loan to a borrower.
Q: The Ara Corporation bonds have a coupon of 14%, pay interest semi-annually, and they will mature in…
A: Time value tells that the money received today is of more value than that of receiving the exact…
Q: You will receive $60 interest every six months from your investment in a corporate bond. The bond…
A: a) What is the present value of the bond in the absence of inflation if the market interest rate is…
Q: Diane Carter is interested in buying a five-year zero coupon bond whose face value is $1,000. She…
A: We are given following details in the question : Face value = $1000 Market interest rate = 9% Time…
Q: onsider an 8 year, 12 percent coupon bond with a par value of 1,000 on which interest is payable…
A: The price of the bond is the amount the investors are willing to pay for the bond today.
you have just purchased a 15 year, 1000 par
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- You purchased a bond for 1,100. The bond has a coupon rate of 9 percent, which is paid semiannually. It matures in 17 years and has a par value of 1,000. What is your expected rate of return. How can i solve this with a financial calculator?Suppose you just purchased a 8 year, $1,000 par value bond. The coupon rate on this bond is 7% annually, with interest being paid semi-annually. If you expect to earn a 11% rate of return on this bond, how much did you pay for it? (Round your answer to two decimal point)Suppose you purchase a 10-year bond with 6.1 % 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 4.7 % 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?
- Suppose you purchase a 10-year bond with 6% annual coupons. You hold the bond for fouryears, and sell it immediately after receiving the fourth coupon. If the bond’s yield to maturitywas 5% 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 internal rate of return of your investment?Suppose you purchase a 10-year bond with 6.3% 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 4.6% 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?Suppose you purchase a 10-year bond with 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 4.01% 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 internal rate of return of your investment? Note: Assume annual compounding. The cash flow at time 1-3 is $ (Round to the nearest cent. Enter a cash outflow as a negative number.) (Round to the nearest cent. Enter a cash outflow as a negative number.) The cash outflow at time 0 is $ The total cash flow at time 4 (after the fourth coupon) is $ negative number.) b. What is the internal rate of return of your investment? (Round to the nearest cent. Enter a cash outflow as a
- Suppose you purchase a 10-year bond with 6.4% 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 5.5% 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? a. What cash flows will you pay and receive from your investment in the bond per $100 face value? The cash flows from the investment are shown in the following timeline: (Round to the best choice below.) A. Year 0 1 2 3 4 Cash Flows $110.90 $6.40 $6.40 $6.40 $104.50 B. Year 0 1 2 3 4 Cash Flows - $106.78 $6.40 $6.40 $6.40 $110.90 C. Year 0 2 3 4 Cash Flows $104.50 $6.40 $6.40 $6.40 $110.90 OD. Year 1 2 3 Cash Flows $106.78 $6.40 $6.40 $6.40 $110.90 b. What is the annual rate of return of your investment? The annual rate of return of your investment is %. (Round to one decimal place.)Suppose you purchase a ten-year bond with 12% 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 10.64% 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 internal rate of return of your investment? Note: Assume annual compounding. a. What cash flows will you pay and receive from your investment in the bond per $100 face value? The cash flow at time 1-3 is $ (Round to the nearest cent. Enter a cash outflow as a negative number.) The cash outflow at time 0 is $ number.) (Round to the nearest cent. Enter a cash outflow as a negative The total cash flow at time 4 (after the fourth coupon) is $. (Round to the nearest cent. Enter a cash outflow as a negative number.) b. What is the internal rate of return of your investment? The internal rate of return of your investment is %. (Round to two decimal…Suppose you purchase a 10-year bond with 6.19% annual coupons. You hold the bond for 4 years, and sell it immediately after receiving the fourth coupon. If the bond's yield to maturity was 5.34% 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? a. What cash flows will you pay and receive from your investment in the bond per $100 face value? The cash flows from the investment are shown in the following timeline: (Round to the best choice below.) A. Years 2 3 Cash Flows $106.46 $6.19 $6.19 $6.19 $110.46 B. Years 0 2 3 4 Cash Flows - $106.46 $6.19 $6.19 $6.19 $110.46 C. Years 0 1 2 3 4 Cash Flows $104.27 $6.19 $6.19 $6.19 $110.46 D. Years 0 2 3 4 + $6.19 $6.19 $6.19 $104.27 Cash Flows - $110.46 b. What is the annual rate of return of your investment? The annual rate of return of your investment is %. (Round to two decimal places.)
- Suppose you purchase a 10-year bond with 6.19% annual coupons. You hold the bond for 4 years, and sell it immediately after receiving the fourth coupon. If the bond's yield to maturity was 5.34% 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? a. What cash flows will you pay and receive from your investment in the bond per $100 face value? The cash flows from the investment are shown in the following timeline: (Round to the best choice below.) A. Years 0 2 3 4 Cash Flows $106.46 $6.19 $6.19 $6.19 $110.46 B. Years 0 2 3 4 Cash Flows - $106.46 $6.19 $6.19 $6.19 $110.46 ○ C. Years 0 2 3 4 Cash Flows $104.27 $6.19 $6.19 $6.19 $110.46 D. Years 0 2 3 4 Cash Flows - $110.46 $6.19 $6.19 $6.19 $104.27 b. What is the annual rate of return of your investment? The annual rate of return of your investment is %. (Round to two decimal places.)Suppose you purchase a 10-year bond with 6.3% 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 4.6% 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? Cash Flows - $113.39 $6.30 $6.30 $6.30 b. What is the annual rate of return of your investment? The annual rate of return of your investment is %. (Round to one decimal place.) $115.04Suppose you purchase a 10-year bond with 6.4% 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 5.3% when you purchased and sold the bond, what is the annual rate of return of your investment? (Round to 2 decimal places)