4 years ago, you purchased a corporate bond for R975.30. At the time, the bond had a YTM of 9.25% and 8 years left to maturity. Today, the YTM on your bond is 6%. With this information, can you calculate the current market price of your bond? Assume fixed annual coupon payments and a par value of R1,000 A. R 925 B. R 1000 C. R 1079.20 D. R 1097.02
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4 years ago, you purchased a corporate bond for R975.30. At the time, the bond had a YTM of 9.25% and 8 years left to maturity. Today, the YTM on your bond is 6%. With this information, can you calculate the current market price of your bond? Assume fixed annual coupon payments and a par value of R1,000
A. R 925
B. R 1000
C. R 1079.20
D. R 1097.02
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- 4 years ago, you purchased a corporate bond for R975.30. At the time, the bond had a YTM of 9.25% and 8 years left to maturity. Today, the YTM on your bond is 6%. With this information, can you calculate the current market price of your bond? Assume fixed annual coupon payments and a par value of R1,000 A. R 925 B. R 1000 C. R 1079.20 D. R 1097.02You purchased a coupon-bearing bond at $1000 and resold it at $1200 after exactly one year. If the coupon is $60 paid annually, what is the current yield of the bond? OA 0.060 O B. 0.050 OC. 0.200 O D. 0.26Suppose you want to purchase a bond with a $1,000 par value maturing in 4 years with an 8% annual coupon interest rate, and has a market interest rate of 6%. What’s the price or the value of this bond? Select one: a. $1,069.31 b. $1,000 c. $9712 d. 927.66
- You have purchased a 14 year $1000 per value bond. The annual coupon rate on the bond is 9.7% paid each 6 month. If you expected to earn the market rate of 12.8% as the return on this bond. How much did you pay for it a. 800.45 b. 830.5 c. 537. 43 d. 802. 67Baywa has an outstanding bond that has a coupon rate of 8.3%. What is the market price of this bond if it pays interest semiannually, has 15 years to maturity, and the current required rate of return is 9% on bonds of similar quality? a. $954 b. $1059 c. $1,000 d. $943You purchase a U.S. 8.14%, 30-year bond with a face value of $100 selling at par. 1. What is the yield to maturity on the bond? 2. What is the duration of the bond? 3. If you sold the bond at the end of 1 year what price would you receive for it if its yield to maturity increased to 10 percent? 4. What cash flow yield would you earn on the bond if sold it at the end of 10 years at a yield to maturity of 10 percent? 5. What realized compound yield (i.e. RCY) would your earn on the bond over 10 years if you were able to reinvest the coupons at 8 percent per year? Assume the bond can be sold at the end of 10 years at a yield to maturity of 8 percent?
- Suppose you purchased one of SWH's bonds on the day it was issued. The bond had a coupon rate of 5.5% (paid semiannually), the par value of $1,000, and a 15-year maturity. The investors' required rate of return at the time of issue was 5.5%. How much would you have paid to purchase the bond? Vb = $1,000 ✔Assume that immediately after you purchased the bond, the market conditions changed, so the investors' rb increased from 5.5% to 6.5%. How would the value of your bond be affected? Vb ↓ to $905.09 ✔What would happen to the bond price if rb decreased from 5.5% to 4.5% immediately after the bond was issued? Vb ↑ to $1108.23 Please make sure your answer is correct. Don't answer if you are not sure. don't use chat gpt as well. Thank youCalculate the value of a R1,000 bond which has 10 years until maturity and pays quarterly interest at an annual coupon rate of 12 percent. The required return on similar-risk bonds is 20 percent. What is the correct answer A. R656.77 B. R835.45 C. R845.66 D. R2,201.08A bond promises to pay you $7,000.00 in 10 years. If you are able to earn 6 percent on securities of equal risks, what would be the present value of the Bond? (to the nearest dollar) Select one: O a. $4,200 O b. $3,589 Oc. $3,727.00 O d. $3,909 A bond will sell at if the required return is greater than the coupon rate.
- What is the approximate price of a bond that matures in two years (T= 2), with a face value of $1000 (F= $1000), and an annual coupon payment of $50 (C = $50), if the interest rate is 6 percent? $1056.67 $1100.00 $876.33 $981.67A bond has ₱100, 000 face value, 3.2% coupon, and 4-year maturity period. How much interest will the bondholder receive every year? a. ₱4, 300 b. ₱5, 200 c. ₱3, 200 d. ₱2, 300a. You are considering purchasing a bond that has 4 years to maturity with 6% coupon rate.Comparable investments are expected to provide 4% annual return. How much would you pay for this bond? Answer is: 1070.60 b. You purchased the bond in the previous question - 4 year 6% coupon bond - at the price of $ 1072.60. You plan to hold the bond until the bond matures. What is the annual rate of return from the bond investment? c. You bought the bond in Q1 - 4 year 6% coupon bond - at the price of $1072.60. Now, instead of holding it for the next 4 years, you plan to sell it in 2 years at the price of $1070. If your plan works out, what is the annual rate of return from your 2-year investment?