Suppose that for a price of $960 you purchase a 7-year Treasury bond that has a face value of $1,000 and a coupon rate of 4%. If you sell the bond one year later for $1,120, what was your rate of return for that one-year holding period? The rate of returm for the one-year holding period was place.) %. (Round your response to one decimal

Q: At the beginning of the year, you bought a $1,000 par value corporate bond with a 6 percent annual…

A: par = $1000 coupon rate = 6% n= 10 year r=8%

Q: You purchase a 8 - year bond at $ 97 per $ 100 par value that pays a 7.3 % coupon per annum .…

A: The market value of a bond is the price at which you could sell it to another investor before it…

Q: Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds…

A: YTM is the yield to maturity. It is the return earned from a bond if holding it till maturity. Bond…

Q: Suppose you purchased a $20,000 face value strip bond on a date when it had 11 years left until…

A: Bonds are the debt security which is offered or issued by the corporates or the governments to…

Q: Suppose you purchase a zero coupon bond with face value $1,000, maturing in 25 years, for $180. What…

A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv],…

Q: You bought one of Great White Shark Repellant Co.’s 5.8 percent coupon bonds one year ago for…

A: Real return is the return which adjusts inflation. In simple words, it is that return which an…

Q: you have just purchase a outstanding non-callable 15 year bond with a par value of 1000. assume that…

A: par value =1000 Coupon =7.5% period =15 years  YTm =6%

Q: Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000.…

A: Yield: This is the earning power or the income generated through an investment. In bond market,…

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: Suppose that Ford issues a coupon bonds at a price of $1,000, which is the same as the bond's par…

A: In the given question we required to tell the payment investor would receive every year except last…

Q: Suppose you purchase a zero coupon bond with a face value of 10,000 maturing in 10 years, for…

A: Using the rate function in excel

Q: Assume that three years ago, you purchased a 10-year corporate bond that pays 8.0 percent. The…

A: Lets understand the basics. When market rate of interest rate is same as bond interest rate then…

Q: You purchase a bond with a coupon rate of 9.1 percent, a par value of $1,000, semiannual coupons,…

A: A bond is a borrowing security issued by the company to raise funds from the market by making an…

Q: If you purchase a 5-year, zero-coupon bond for $691.72, how much could it be sold for 3 years later…

A: Zero coupon bonds are bonds which do not pay coupons and sold at discount to face value

Q: You buy a(n) 7.4% coupon, 5-year maturity bond for $976. A year later, the bond price is $1,136.…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: You buy an 6.9% coupon, paid annually, 11-year maturity bond for $965. A year later, the bond price…

A: The question gives the following information:

Q: Suppose you purchase a $100 three-year, 5-percent coupon bond at par and hold it for two years.…

A: In order to calculate the holding period return of the bond first we need to calculate the price of…

Q: Showing your calculations, calculate the price of a $100,000 debenture bond that matures in 15…

A: The price of an asset is computed as the present value of the future cash flows associated with the…

Q: Lee Song has just purchased bonds for $48 million that have a par value of $50 million, six years…

A: given information   purchased bonds = $48 millions  par value of bonds = $50 millions  coupon rate =…

Q: Suppose you bought a bond with an annual coupon rate of 5.2 percent one vear ago for $920. The bond…

A: Given Information: Bond bought one year ago = $920 Bond sales value today = $970 Annual coupon rate…

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: 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: What is the cost of new AND existing debt if the current price of the bonds is $1,050? The bonds pay…

A: Cost of debt is the cost of raising capital from the source of debt. A company has to bear this cost…

Q: Sprint has issued bonds that will mature in six years and pay an 8% coupon semiannually. If you paid…

A: For final decision we need fair value and to calculate the fair value we will use the below formula…

Q: Harrimon Industries bonds have 5 years left to maturity. Interest is paid annually, and the bonds…

A: Yield to maturity (YTM) is the rate earned when the bond is held till the end of its term.

Q: Consider an investor who, on January 1, 2XX1, purchases a TIPS bond with an original principal of…

A:

Q: You purchased a $1000 face value zero-coupon bond one year ago for $260.3. The market interest rate…

A: Purchase price of the bond is $260.3. The formula to calculate current bond price is given below:

Q: what was your total return for the past year?

A: Information Provided: Price paid = $283.33 Interest rate = 9% Term = 15 years Compounding =…

Q: You wish to sell a bond that has a face valueof $5,000. The bond bears an interest rate of…

A: First, calculate the coupon amount:

Q: Suppose that you bought a 14% Drexler bond with time to maturity of 9 years for $1,379.75…

A: Here, As the Face Value of the Bond is not given in the question, we are assuming it to be $1,000.…

Q: Suppose you purchased a corporate bond with a 10-year maturity, a $1,000 par value, a 10% coupon…

A: Given: Particular  Value Par Value 1000 Time to maturity 14 Coupon rate 10%

Q: You want to purchase a bond that will pay you $300 per year for the next four years. If the annual…

A:

Q: Your company currently has $1,000 a par, 5% coupon bonds with 10 years to maturity and a price…

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…

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: Suppose you bought a bond with an annual coupon rate of 8.9 percent one year ago for $912. The bond…

A: Bond is a financial instrument that is loan to business and its pays the fixed return to investors.

Q: You buy a 2-year bond with a(n) 8% coupon paid annually and $1,000 face value. You pay $960. After…

A: Data given:  Face value = $ 1000 Coupon= 8% (annually) Purchase price= $960 Selling price= $1100…

Q: Suppose the investor sells his bonds before maturity and uses some of the proceeds to purchase a…

A: After the interest has been compounded, the Effective Annual Rate (EAR) is the rate of interest…

Q: Suppose you bought a bond with an annual coupon rate of 8.4 percent one year ago for $960. The bond…

A: Total dollar return = [current bond price - last year price + coupon payment]   = [$960 - $960 +…

Q: Three years ago you purchased a 7% coupon bond that pays semiannual coupon payments for $962. What…

A: Bond equivalent yield  formulae is                         Face value-Purchase price/purchase price…

Q: Please provide complete step by step asnwer:  You purchased an annual interest coupon bond one year…

A: TIME VALUE OF MONEY The time worth of cash (TVM) is the idea that cash you have now is worth more…

Q: One year ago you bought a 5-year 8% coupon bond that will pay $1,000 at maturity (its par value).…

A: Purchase price = $ 924.18 Par value = $ 1000 Coupon rate = 8% Coupon amount = 1000*0.08 = $ 80 Years…

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.