Mickey and Minnie just bought a zero coupon bond for $597.97, but they cannot recall when it matures. The yield to maturity equals 5.2%. Can you help Mickey and Minnie? The bond's face value is $1000. (Assume annual discounting) (Enter your answer in years and round to 2 decimal places.)
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Mickey and Minnie just bought a zero coupon bond for $597.97, but they cannot recall when it matures. The yield to maturity equals 5.2%. Can you help Mickey and Minnie? The bond's face value is $1000. (Assume annual discounting) (Enter your answer in years and round to 2 decimal places.)
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- Mickey and Minnie just bought a zero coupon bond for $468.90, but they cannot recall when it matures. The yield to maturity equals 9.9%. Can you help Mickey and Minnie? The bond's face value is $1000. (Assume annual discounting) (Enter your answer in years and round to 2 decimal places.)Seven years ago, a semi-annual coupon bond with a 10% coupon rate, $1,000 face value and 15 years to maturity was issued by Corn Inc. Teddy bought this bond two years ago when the market interest rate was 12%. And now the market interest rate is 5%. If teddy sells the bond now, what is Teddy’s capital gain/loss yield on the bond investment? Find the initial purchase price and selling price, then determine the yield.Suppose that Jenna just bought a newly issued 15-year bond with a coupon rate equal to 7%. If Jenna sells the bond at the end of the year when the market price is $917, what would be the bond's yield to maturity?
- Last year, Joan purchased a $1,000 face value corporate bond with an 8% annual coupon rate and a 20-year maturity. At the time of the purchase, it had an expected yield to maturity of 9.63%. If Joan sold the bond today for $942.31, what rate of return would she have earned for the past year? Round your answer to two decimal places.A friend of yours just invested in an outstanding bond with a 5% annual coupon and a remainingmaturity of 10 years. The bond has a par value of $1,000, and the market interest rate is currently7%. How much did your friend pay for the bond? Is it a par, premium, or discount bond?Suppose that Jenna just bought a newly issued 15-year bond with a coupon rate equal to 7%. If Jenna sells the bond at the end of the year when the market price is $917, what would be the bond's yield to maturity? What return would she earn? What portion of the return represents capital gains and what portion represents the current yield?
- andra has just been given a $5000 one-year bong with a coupon rate of 7 percent per year. However, she needed the money now and is surpised to find that the market value of the bond has increased to $5200. What rate of return (interest) would a prospective buyer earn on this bond?Angelo purchased a 7% annual coupon bond one year ago for $987. At the time of purchase, the bond had six years to maturity. Over the past year inflation has been 3.2%. The market required return on this bond today is 8%. If Angelo sells the bond today at the market price, what real rate of return will he realize on this investment? -1.16% 1.13% 4.36% 4.33% 1.17%Linda wanted to invest in a bond issued by JoJo Ltd. The bond has $1,000 par value, matures in ten (8) years and has a coupon rate of 8.5%, with coupon paid semi-annually. What is the maximum price Linda should pay for the bond if her alternative is to invest in her friend's company who will guarantee a 10% pa return, compound semi-annually?
- Last year, Sally purchased a $1,000 face value corporate bond with an 11.2 percent annual coupon rate and a 12-year maturity. At the time of the purchase, it had an expected yield to maturity of 11.9 percent. If Sally sold the bond today for $949.88, what rate of return would she have earned for the past year? a. 11.02% b. 11.20% c. 11.10% d. –0.69% e. 10.51%Fiona Trail is a recent retiree who is interested in investing some of her savings in corporate bonds. Her financial planner has suggested she invest in bond A, which has 5% coupon rate, paid semi-annually, mature in 15 years, and has a $1000 face value. Bond A has a current yield to maturity of 7.5% Without calculating the price of the bond, indicate whether the bond is trading at a premium, at a discount, or at par. Explain your reason. In other words, use concepts to justify your conclusion, without actually calculating the bond price here.Three years ago you purchased a 8% coupon bond that pays semiannual coupon payments for $965. What would be your bond equivalent yield if you sold the bond for current market price of $1,044? Your bond equivalent yield, if you sold the bond for current market price, is nothing%. (Round to two decimal places.)