Question: Please answer all questions. No long explanation is needed. 1. A 20-year 7.8% coupon $1000-par bond has a YTM of 9%. What is the bond's
Please answer all questions. No long explanation is needed.
1. A 20-year 7.8% coupon $1000-par bond has a YTM of 9%. What is the bond's price?
2. A 10-year $5000-par 5% coupon municipal bond sells for $4600. What is the bond's YTM?
3. A 30-year $1000-par 5.5% coupon Treasury bond sells for $685. What is the bonds YTM?
4. A 10-year $1000-par 6% coupon bond has a YTM of 8.5%. What is the bond's expected capital gains yield?
5. If you sell the bond in the previous questions 4 years after buying it, and the bond's yield has changed to 7.5%, what is your HPR?
6. What sale price would have been required in order for the investor to have earned a 12% HPR?
7. What sale price would have been required in order for the investor to have earned a 12% HPR?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
