You purchased an annual interest coupon bond one year ago that had six years remaining to maturity at that time. The coupon interest rate was 10%, and the par value was $1,000. At the time you purchased the bond, the yield to maturity was 8%. If you sold the bond after receiving the first interest payment and the yield to maturity continued to be 8%, your annual total rate of return on holding the bond for that year would have been A) 7.00%. B) 7.82%. C) 8.00%. D) 11.95%. E) None of the options are correct. Provide accurate answer with justification.

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Q: Today, you bought one corporate semiannual bond with $1,000 par value, 8% coupon rate, 8 years left…

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Q: You purchased a 10-year, 5% annual-coupon bond with $1,000 par value. The yield to maturity at the…

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Q: You bought a 20-year bond that has a coupon rate of 8 percent, pays coupons annually, and sells at a…

A: PMT = 8% of 1000 = 80 FV = 1000 rate = 6.5% N = 19 use PV function in Excel

Q: Kevin just purchased an 8-year semi-annual coupon bond with a par value of $1,000 and a coupon rate…

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Q: You purchased an annual-interest coupon bond one year ago with six years remaining to maturity at…

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Q: You purchased an annual-interest coupon bond one year ago with six years remaining to maturity at…

A: Bond: It refers to a financial instrument which is used by issuers to borrow  money from investors.

Q: please mannully compute : Two years ago, you bought a 10-year, 6% annual coupon payment bond when…

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Q: Exactly 3 years ago, you bought a bond for $925.  You just received your 6th coupon payment of $30,…

A: YTM is that rate of return which was actually earned by the investor on his investment amount

Q: Yesterday you paid $1000 for a 6% coupon, $1000 face value 5-year bond. It is callable at the end…

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Q: A friend of yours just invested in an outstanding bond with a 5% annual coupon and a…

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Q: Manuel bought a $100,000 bond with a 5.5%coupon for $92,450 when it had five years remaining to…

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Q: A $6,000 bond had a coupon rate of 5.75% with interest paid semi-annually. Bianc purchased this bond…

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

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Q: Two year ago, you purchased a 6% coupon bond with 10 years to maturity and had a yield to maturity…

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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: A $1,000 bond has a 6.5 percent coupon and matures after ten years. If current interest rates are 8…

A: 1.    Bond Price = 1000*6.5% * PVAF(8%, 10 years) + 1000* PVF (8%, 10 years)…

Q: Today is January 1, 2003 and you just purchased a 7-year, zero coupon bond with a face value of…

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Q: The Brownstone Corporation’s bonds have 5 years remaining to maturity. Interest is paid annually,…

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Q: You purchased an annual interest coupon bond one year ago that had six years remaining to maturity…

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Q: you have just purchased a 15 year, 1000 par value bond. the coupon rate on this bond is nine percent…

A: Price of bond is the present value of coupon payment and present value of par value.

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

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Q: Suppose you sold an issue of bonds with a 5-year maturity, a $1,000 par value, a 10% coupon rate,…

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Q: Assuming a $1,000 face value, what was your total dollar return on this investment over the past…

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