Two years ago you bought a Commonwealth Government bond for $1,000 because you liked the 10% p.a. coupon interest payment that you would receive for 10 years. Interest on the bond is paid annually. Two years later when the market interest rate has fallen to 8% p.a. what is the value of your Commonwealth Government bond?
Two years ago you bought a Commonwealth Government bond for $1,000 because you liked the 10%...
A government bond with a face value of $1,000 was issued eight years ago there are seven years remaining unit maturity. The bond pays semi-annual coupon payments of $45, the coupon rate is 9% p.a. paid twice yearly and rate in the marketplace are 9.6% p.a. compounded semi annually. What is the value of the bond today?
A- You bought a bond five years ago for $779 per bond. The bond is now selling for $760. It also paid $50 in interest per year, which you reinvested in the bond. Calculate the realized rate of return earned on this bond. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Realized rate of return % B- You have just been offered a bond for $863.90. The coupon rate is 7 percent payable...
ond 0-2 Rick bought a bond when it was issued by Macroflex Corporation 14 years ago. The bond, which has a $1,000 face value and a coupon rate equal to 10 percent, matures in six years. Interest is paid every six months; the next inter- est payment is scheduled for six months from today. If the yield on similar risk investments is 14 percent, what is the current market value (price) of the bond? 10-3
5. A 20-year bond with $1,000 face amount and 7% annual coupons was issued twenty years ago. You bought the bond six years ago, immediately after a coupon was paid, when the market interest rate on such bonds was 6%, and you sold it two years ago, immediately after a coupon was paid, when the market interest rate was 5%. What rate of return did you earn over the period when you held the bond? (Hint: You must figure out...
Suppose that you just bought a four year $1,000 coupon bond with a coupon rate of 6.8% when the market interest rate is 6.6%. One year later, the market interest rate falls to 4.6% The rate of return earned on the bond during the year was % (Round your response to two decimal places.)
Your grandfather purchased a $1,000 face-value bond 10 years ago. When he purchased the bond, it had 30 years to maturity and a coupon rate of 9% paid annually. Now you want to sell the bond and read that the yield on similar bonds is 3.65%. What can you sell the bond for today?
Suppose that you just bought a four-year $1,000 coupon bond with a coupon rate of 6.3% when the market interest rate is 6.3%. One year later the market interest rate falls to 4.3% The rate of return earned on the bond during the year was % (Round your response to two decimal places.)
Fifteen years ago you purchased for $950 a bond issued by the DEF Co The bond had twenty years to maturity, a par value of $1,000, a 12% coupon na paid interest semiannually. Since you had no immediate use for the inte payments, you deposited them in your savings account. For the first 5 years o. bank paid 4% compounded semiannually, but for the last 10 years you have only earned 3% compounded semiannually. Tomorrow you will receive your 30th...
Ten years ago your grandfather purchased for you a 25-year $1,000 bond with a coupon rate of 9 percent. You now wish to sell the bond and read that yields are 8 percent. What price should you receive for the bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. $ Appendix B Appendix D
4. You bought a callable bond at the face value two years ago. The bond has a four- year maturity, a 10 percent annual coupon, a $1,000 face value, and a $1,021 call price. Suppose the bond is called immediately after you have received the second coupon payment. What is the bond's yield to call? A) 10% B) 11% C) 12% D) 14% 5. A corporate bond matures in one year. The bond promises a $50 coupon and principal of...