You buy an 8 percent, 30 - year, $ 1,000 par value floating rate bond in 2025. By the year 2030, rates on bonds of similar risk are up to 10 percent.
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You buy an 8 percent, 30 - year, $ 1,000 par
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- On January 2021, you buy a 10-year coupon bond with coupon payments of $10,000 per year and a final value of $100,000. The yield to maturity of this bond is 10 percent. On January 2022, you collect your first coupon and sell the bond in the bond market. On January 2022 the yield to maturity of this bond decreases to 8 percent. Calculate the following: a. holding period return rate b. current yield rate c. capital gain rate Please include formulas and calculationsYou wish to purchase a 10-year bond that was issued in 2013, par value $1,000 and has a 6% coupon rate, payable semi-annually. The bond matures in 2023 and you require a 10% nominal yield to maturity. What’s the term to maturity of the bond iin 2020?You wish to purchase a 10-year bond that was issued in 2013, par value $1,000 and has a 6% coupon rate, payable semi-annually. The bond matures in 2023 and you require a 10% nominal yield to maturity. What’s the term to maturity of the bond iin 2020? At what price should you be willing to pay for the bond in 2020? What’s the bond’s current yield?
- A Treasury bond that settles on May 18, 2019, matures on December 31, 2031. The coupon rate is 9.65 percent, and the quoted price is 106 12/32. What is the bond’s yield to maturity? Payments are semi-annually.You bought a $1,000 face value Citicorp callable bond in January 2023 that is callable at 101 in 2028 and 2029 and at par after 2029. It has a coupon rate of 5.2%/year. Excluding interest, how much would you receive if Citicorp called the bond in 2029? In a few words, when is Citicorp likely to call the bond?A bond has a face value of $10,000 and matures on August 24 2030 with a bond rate of 3.1% compounded semi-annually. If the bond was purchased on February 24 2020 at a market rate of 3.7% compounded semi-annually, what was the purchase price of the bond?
- If a bond issued on March 23, 2023 has par or face value of $1000.The bond will mature on March 22, 2032. The coupon rate is 7%, and coupons are paid semi-annually. If the market interest rate is 10%, what is the bond price when issued?A treasury bond that settles on August 10, 2019, matures on January 15, 2025. The coupon rate is 5.2 percent and the quoted price is 110 11/32. What is the bond's yield to maturity?It is now January 1, 2021, and you are considering the purchase of an outstanding bond that was issued on January 1, 2019. It has a 9.5% annual coupon and had a 20-year original maturity. (It matures on December 31, 2038.) There is 5 years of call protection (until December 31, 2023), after which time it can be called at 108—that is, at 108% of par, or $1,080. Interest rates have declined since it was issued, and it is now selling at 120.08% of par, or $1,200.80. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. _____ % What is the yield to call? Do not round intermediate calculations. Round your answer to two decimal places. ____ %
- It is now January 1, 2022, and you are considering the purchase of an outstanding bond that was issued on January 1, 2019. It has a 5.25% annual coupon and had a 30-year original maturity. There is 5 years of call protection, after which time it can be called at 105.25 - that is, at 105.25% of par, or $1,052.50. Interest rates have declined since it was issued, and it is now selling at 102.5% of par, or $1,025.00. What is the Yield to Maturity (YTM)? What is the Yield to Call (YTC)?It is now January 1, 2022, and you are considering the purchase of an outstanding bond that was issued on January 1, 2019. It has a 5.25% annual coupon and had a 30-year original maturity. There is 5 years of call protection, after which time it can be called at 105.25 - that is, at 105.25% of par, or $1,052.50. Interest rates have declined since it was issued, and it is now selling at 102.5% of par, or $1,025.00. What is the Yield to Call (YTC)?A New Brunswick Power bond issue carrying a 7.6% coupon matures on November 1, 2031. At what price did $1,000 face value bonds trade on June 10, 2019, if the yield to maturity required by the bond market on that date was 5.9% compounded semiannually?