An investor bought two bonds—bond A was a 9% bond at 106 and bond B was a 7% bond at 94. The commission was $5 per bond. Compute how much greater the current yield from bond A is than from bond B. (Round yields to two decimal places.)
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Q: On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.725%.…
A: Current YEILD =Coupon/Market price x 100 Coupon =9.725 Current YEILD =9.725/87.875 ×100 Current…
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An investor bought two bonds—bond A was a 9% bond at 106 and bond B was a 7% bond at 94. The commission was $5 per bond. Compute how much greater the current yield from bond A is than from bond B. (Round yields to two decimal places.)
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- Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual coupon (payable June 30 and December 31) on January 1, 2018, when the market rate of interest was 10%. Were the bonds issued at a discount or premium? Assuming the bonds sold at 92.288, what was the sales price of the bonds?On March 1, Wayne, Michaels bought 10 bonds from a particular company with a coupon rate of 9.725%. The purchase price was 87.875 and the commission was seven dollars per bond. Buns from this particular company pay interest on February 1 and August 1. A-what is the current yield as a percent of the bond as of the purchase date round your answer to one decimal place? B- what is the total purchase price in dollars of the bond round your answer to the nearest cent?  C-if Wayne sold the bonds on November 1 for 92.875 what are the proceeds and dollars from the sale round your answer the nearest cent?On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.325%. The purchase price was 89.875, and the commission was $9 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) = 10.4 % (b) What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) =____$????? (c)If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.) = $9,630.63
- On March 1, Wayne, Michaels bought 10 bonds from a particular company with a coupon rate of 9.725%.  the purchase price was 87.875 and the commission was $7 per bond. I bonds from this particular company pay interest on February 1 and August 1. A-what is the current yield as a percent of the bond as the purchase date round your answer to one decimal place? (I got 11.07 it was correct) B-what is the total purchase price in dollars of the bonds round your answer to the nearest cent? ( I got $893.85 it was wrong ) C-if Wayne sold the bonds on November 1 for 92.875 what are the proceeds in dollars from the sale round your answer to the nearest cent?( I got 110.1875 it was wrong )On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.725%. The purchase price was 87.875, and the commission was $9 per bond. Bonds from this particular company pay interest on February 1 and August 1. A.) What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) B.) What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) C.) If Wayne sold the bonds on November 1 for 92.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.)On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.625%. The purchase price was 89.875, and the commission was $8 per bond. Bonds from this particular company pay interest on February 1 and August 1. (a)What is the current yield (as a %) of the bond as of the purchase date? (Round your answer to one decimal place.) 10.7 % (b)What is the total purchase price (in $) of the bonds? (Round your answer to the nearest cent.) $ (c)If Wayne sold the bonds on November 1 for 94.875, what are the proceeds (in $) from the sale? (Round your answer to the nearest cent.) $
