You purchased a bond at a price of $2,000. In 15 years when the bond matures, the bond will be worth $10,000. It is exactly 9 years after you purchased the bond and you can sell the bond today for $6,100. If you hold the bond until it matures, what annual rate of return will you earn from today?
r = [FV/PV]1/n - 1
= [$10,000/$2,000]1/15 - 1 = 1.1133 - 1 = 0.1133, or 11.33%
You purchased a bond at a price of $2,000. In 15 years when the bond matures,...
you purchased a bond at a price of 3,600. In 25 years when the bond matures, the bond will be worth $25,000. it is exactly 21 years after you purchased the bond and you can sell the bond today for $16,825. If you hold the bond until it matures what annual rate of return will you earn from today?
Assume that you purchase a $1000 par, zero coupon bond today for $225, and it matures in 11 years. What rate of return will you earn on the bond, if you hold it to maturity? Suppose you sell the bond in three years at a price of $342, what rate of return would you earn?
4) You purchase a $1000 par, zero coupon bond today for $225, and it matures in 11 years. a) What rate of return will you earn on the bond, if you hold it to maturity? b) If you sell the bond in 3 years at a price of $342, what rate of return would you earn?
You have a savings bond that $1000 when it matures in 20 years from today but you need cash now. If the current interest rate is 4% what can you get for the bond if you sell today?
1. You purchased a 6.25% bond 4 years ago at par. The bond matures 26 years from now and pays interest at the end of each 6 months. Similar bonds are being issued that pay 8.5% interest. What is your $1,000 bond worth today? 2. Rob Morrisey purchased a $1,000 bond that was quoted at 102.25 and paying 8 7/8% interest. How much did Rob pay for the bond? How much annual interest will be received?
You Purchased an Apple Incorporated bond one year ago for $932.75. This bond pays a semi-annual coupon at 7% rate. Today this Apple Inc bond sells for $988.50, and as of today this bond has 15 years left to maturity. If you sell this bond today, what is your realized rate of return from the time you purchased it until today (coupon yield plus capital gain)?
An 8 percent (annual coupon rate) $2,000 bond matures in 15 years, pays interest daily, and has a yield to maturity of 8 percent. What is the current market price of the bond? A. $1,945.08 B. $1,947.21 C. $1,959.09 D. $2,059.60 E. $2,000.00
What annual rate of return will you earn from a $1,000 zero coupon bond that matures in ten years if you pay $376 for it today? On the other hand, what is the most you would pay today for the same bond if you needed to earn an annual 7.5% from your investment?
2. Determine the Price of the Bond at each time period. If you purchase the bond today (at time =0) and hold it until maturity, what is the interest yield, capital gain yield, and total return the you will earn? Time Periods Remaining Price Face Value Coupon Rate Discount Rate Time $1,000 8.00% 6.00% 3 years w 3. Beans Corp just paid a dividend of S4.00. The dividend will grow at a rate of 15% for 2 years and then...
You own a bond that has a 6% annual coupon rate and matures 5
years from now. You purchased this 10-year bond at par value when
it was originally issued. Which one of the following statements
applies to this bond if the relevant market interest rate is now
5.8% (yield to maturity)?
You purchase a bond with a coupon rate of 6.25% and a par value
of $1,000. There are 53 days to the next semiannual coupon payment
date and...