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The current income is ?
The investor would experience a Gain, Loss, or Neither?
The total return on this investment is
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- man.3 Bond returns Last year, Joan purchased a $1,000 face value corporate bond with an 10% annual coupon rate and a 15-year maturity. At the time of the purchase, it had an expected yield to maturity of 10.27%. If Joan sold the bond today for $1,099.84, what rate of return would she have earned for the past year? Round your answer to two decimal places.Q1 A corporate bond that you own at the beginning of the year is worth $975. During the year, it pays $35 in interest payments and ends the year valued at $965.What was your dollar return and percent return? (Round "Percent return" answer to 2 decimal places.) DOLLAR RETURN PERCENT RETURN. %Q) An $6,000 face-value bond matures in four (4) years and pays 6% per year payable Semiannually An investor wants a 10% return per year compounded Semiannually. How much should the investor pay for the bond? Explain it correctly. Note:- not solve in excel works.Typed or handwriting onlys
- Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 8 percent interest annually and have 15 years until maturity. You can purchase the bond for $1,075. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? Question content area bottom Part 1 a. The yield to maturity on the Saleemi bonds is enter your response here%. (Round to two decimal places.) Part 2 b. You ▼ should should not purchase the bonds because your yield to maturity on the Saleemi bonds is ▼ greater less than the one on a comparable risk bond. (Select from the drop-down menus.)Q3. A company issues a $ 20,000 bond at a coupon rate of 7.5% payable semi-annually. Joan purchased this bond 10 years before maturity when the yield was 7% compounded semi-annually and sold it two years later when the bond's market yield was 8% compounded semi-annually. Calculate the gain or loss on this investment.Question 3 A 7% annual coupon bond (face value $1,000), with three years left till maturity is selling for $986.90. Zero-coupon bonds of 1, 2, 3 years maturity (all with face value of $1,000) sell for $950, $900, $820, respectively. Is this coupon bond properly priced? If not, show an arbitrage transaction to profit $2000 (today) from the mispricing.
- (Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 12 percent interest annually and have 11 years until maturity. You can purchase the bond for $945. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 14 percent? Question content area bottom Part 1 a. The yield to maturity on the Saleemi bonds is enter your response here%. (Round to two decimal places.)Question A .A $1,000 par value bond with an annual coupon rate of 5%, and callable at $1,050, can be converted into 18 shares of common stock. Currently, common stock sells for $55 and the bond sells for $1,020. How much will this bond be worth upon conversion (conversion value)? $990. $1,020. $1,050. $950. $1,000. $1,055. 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 lineASAP 1. Amed bought a bond tor $800. The bond has a face value of $1000, pays 10% dividend semiannualy and will mature in 10 yearsa) Draw the cash flow diagram of the bond. b)What is the yield to maturity of the bond (bond's rate of return per year)? c) Suppose that Ahmed is yet to buy this bond provided that the market interest rate is 8% nerest compounded quarterly, what will be the maximum that he will pay to buy this bond.
- Question No. 3: The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 face value at maturity. Bond L has a maturity of 15 years, and Bond S has a maturity of 1 year. What will be the value of each of these bonds when the going rate of market interest is 8%? What will be the value of each of these bonds when the going rate of market interest is 12%. what can you conclude from the results of the above questions?Problem: 5-year, P10,000 Debenture bond, 10% p.a. interest payable annually is offered to Joy at 98. At the time the bond is offered to Joy, it has 3 years remaining life. Joy wants a required rate of return of 12% Required: a. What is the value of the bond if the required rate of return of Joy is 12% p.a. Should Joy purchase the bond? b. What is the value of the bond if the required rate of return of Joy is 8% p.a. Should Joy purchase the bond? c. What is the value of the bond if the required rate of return of Joy is 10% p.a. Should Joy purchase the bond? Comment on the results of your computation above.Finance Two years ago on August 31st, Wojtek purchased a strip bond with a bond equivalent yield of 7.12315%. The bond matures on June 30th in seven years at a value of $75,000. If Wojtek sells the bond on August 31st of this year for $51,035.49, what is his capital gain? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Do not provide Excel Screet shot rather use tool table Answer completely.