Question: Your client bought a $1000 face-value bond with 20-years remaining to maturity for $1,250. The bond pays a semi-annual coupon at 10% APR compounded semi-annually.

Your client bought a $1000 face-value bond with 20-years remaining to maturity for $1,250. The bond pays a semi-annual coupon at 10% APR compounded semi-annually. However, 3 years later (just after receiving his 6th semi-annual coupon payment), he sold the bond for $1,226. What was his realized yield (or realized return) stated as an APR with semi-annual compounding? Enter rate in decimal form, rounded to fourth digit, as "0.1234".

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Your client bought a $1000 face-value bond with 20-years remaining to maturity for $981. The bond pays a semi-annual coupon at 9% APR compounded semi-annually. However, 3 years later (just after...

Jon stock just paid a quarterly dividend of $1.39 per share (d0 = 1.39). ABC's dividends are expected to grow at a rate of 4% APR compounded quarterly over the next 6 years, and then remain constant...

Your client bought a $1000 face-value bond with 20-years remaining to maturity for $1,109. The bond pays a semi-annual coupon at 10% APR compounded semi-annually. However, 3 years later (just after...

Your client bought a $1000 face-value bond with 20-years remaining to maturity for $981. The bond pays a semi-annual coupon at 9% APR compounded semi-annually. However, 3 years later (just after...

Question 16 10 pts Your client bought a $1000 Face value bond with 20-years remaining to maturity for $789. The bond pays a semi-annual coupon at 9X APR compounded semi-annually. However, 3 years...

Question 16 10 pts Your client bought a $1000 face value bond with 20-years remaining to maturity for $789. The bond pays a semi-annual coupon at 9% APR compounded semiannually. However 3 years later...

A $1000 face value corporate bond, with 8 years remaining to maturity, offers a semi-annual coupon at a rate of 6.4% APR compounded semi-annually. What is the price of the this bond if the current...

i am taking Cooperate finance which is FIN222 can help me to answer.. ? Tutorial 1 Topic 1 Chapter 1 4. What are the main advantages and disadvantages of organising a firm as a corporation? 6. You...

Evaluate the following statement: The most important audit procedure to verify dividends for the year is a comparison of a random sample of cancelled dividend cheques with a dividend list that has...

1. Choose a faith/based organization or an ecclesial movement. 2. Describe its vision/mission/activities. 3. Is its concern focused more on ad intra (church issues), ad extra (social justice issues),...

As part of understanding internal control, an auditor is not required to:

Posting a picture of yourself at a new restaurant to get a free appetizer is an example of _ _ _ _ _ _ _ _ _ WOM Group of answer choices amplified hyped organic forced natural

=+4. What do they (audience members) currently think (about the brand)?

=+a. Demographics Provides insight into audience by their age, income, education, gender, occupation (employment status), etc.

=+5. What do you want them to think (about the brand)? (THINK CONSUMER BENEFIT.