If you buy a bond today at a 90% discount and sell it at a 20% premium in year 12, what is your holding period return per year? Assume that it is a 25-year semi-annual bond and pays coupon of 11%.
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If you buy a bond today at a 90% discount and sell it at a 20% premium in year 12, what is your holding period return per year? Assume that it is a 25-year semi-annual bond and pays coupon of 11%. Answers with excel formulas will be appreciated
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- I need it by Calculations, answer is not here solved stepwise i need by formulas , im attaching the answer also so you get idea please provide stepwise solution .. Question you purcahsed a five year 6% annual coupon bond one yeta ago for 990 you sold the bond today when the market rate of return is 4.5% if the inflation rate for the past year was 2% what nominal rate of return did you earn on investmentQuestion a An investor buys a 90-day promissory note at a yield of 9.120% p.a. and sells it 30 days laterat a vield of 8.925% p.a. What effective annua rate of return did the investor make? Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line . FastUse Excel or Google Open Source Spreadsheet for this problem: You own a 10 year bond that has a face value of $9,000 and pays 6% interest each year once a year at the end of the year. Eight years after buying it, the interest rate decreases to 4%. You do not want to wait 2 more years to get your principle of $9,000 back because you really need the money now, so you decide to sell it on the open market. 1. How much can you sell it for? 2. Is it a capital loss or a capital gain? How much is the capital gain or loss?
- Using the financial calculator BA II Plus what are the inputs to use to solve for would you buy a 1,000 FV bond selling for 700 10 yrs to maturity Pays a 5% coupon rate Annual required rate of return is 10% Bond pays coupon semi-annuallyFast pls solve this question correctly in 5 min pls I will give u like for sure Surbh Question: Which of the following bonds will have the lowest duration? A 5-year, 8% coupon bond A 7-year, 3% coupon bond A 5-year, 3% coupon bond A 7-year, zero coupon bond Question: A bond that has 5% coupon rate and 10-year maturity will be selling at a discount if: current yield is greater than 5%. dividend yield is at 5% dividend yield is lower than 5%. current yield is lower than 5%.Use Excel or Google Open Source Spreadsheet for this problem: You own a 4 year bond that has a face value of $12,000 and pays 8% a year in interest, once a year, at the end of the year. Two years after buying it, the interest rate increases to 10%. You do not want to wait 2 more years to get your principle of $12,000 back because you really need the money, so you decide to sell it on the open market. 1. How much can you sell it for? 2. Would it be a capital loss or gain and how much? How much is the capital gain or loss?
- eston Help A firm raises capital by selling $28,000 worth of debt with flotation costs equal to 1% of its par value. If the debt matures in 15 years and has an annual coupon interest rate of 7%, what is the bond's YTM? The bond's YTM is %. (Round to two decimal places.) Тext dia Librai l Calculat r Resource Enter your answer in the answer box and then click Check Answer. ic Study Check Answer Clear All es All parts showing nunication Tools > This course (Introduction to Finance (EIN-101-D02) Distance Spring 2021) is hased on 7utter/Smart- Drincinles of Managerial Finance Rrief Re 4/1. P Type here to search insertYou just got an offer for a bond issued by Coala Corporation. The bond pays annual coupons with a coupon rate of 0.05, whlle Its yleld to maturity Is O.105, the bond has 25 years to maturity what is the price of the bond what is the current yield Next page Previous page A Quiz navig: 13 12 11 10 5 ... Finish atte 11:28 0/28/ EN HP hp Auto MenuFast pls solve this question correctly in 5 min pls I will give u like for sure Surbh What is the price of a 2-year bond with a 6% coupon rate and face value of $100? The bond is trading at a yield of 7%. Coupons are paid semi-annually. Assume semi-annual compounding. Round your answer to the nearest cent (2 decimal places).
- Question A A 25-year maturity bond with par value $1,000 makes semi-annual coupon payments at a coupon rate of 8%. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $960. Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this lineSuppose that discount bond prices are as follows: 2 3 4 P. 0.9525 0.899 0.838 0.760 0.05 0.065 0.054 0.070 A customer would like to have a forward contract to borrow $20M two years from now for one vear. Can you (a bank) quote a rate for this forwardloan? Question 15 Your investment account earned 10.8% last year, inflation was 6.0% for last year. What was the real return on your account last year?Only typed answer and please answer correctly and don't use chat gpt a three year bond with $1000 face value and 10% coupon rate is sold for $1000 today (2019). if one year later (2020) the market interest rate increases by 5%, then this bond will have a market price of