1.On August 15, you purchased 100 shares of stock in the Top Company at $65 a share and a year later you sold it for $61 a share. Required: Compute your HPR and HPY on your investment in Top Company. 2. Consider a bond with a coupon rate of 10% and coupons paid annually. The par value is S1000 and the bond has 5 years to maturity. The yield to maturity is 11%. Required: What is the value of the bond?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 17P
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1.On August 15, you purchased 100 shares of stock in the Top Company at $65 a share and
a year later you sold it for $61 a share.
Required: Compute your HPR and HPY on your investment in Top Company.
2. Consider a bond with a coupon rate of 10% and coupons paid annually. The par value is
S1000 and the bond has 5 years to maturity. The yield to maturity is 11%.
Required: What is the value of the bond?

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