What’s the bond current yield and capital gain yield

Assignment Help Financial Management

Reference no: EM131851711

Part 1: Analyze the 10-year, 8% coupon rate (semi annual payment), $1000 par value bond. The bond currently sells for $1318. What’s the bond’s current yield, and capital gain yield?

A. 6.07%, 0.71%

B. 6.07%, -0.71%

C. 6.07%, 1.97%

D. 6.07%, -1.97%

Part 2: Analyze the 10-year, 8% coupon rate (semi-annual payment), $1000 par value bond. The bond currently sells for $1318. What’s the bond’s yield to maturity?

A. 5.36%

B. 4.10%

C. 2.05%

D. 6.15%

Part 3: If you earned a rate of return of 8% on your bond investments last year. During that time the inflation rate was 2.68%. What is your real rate of return?

A. 5.18%

B. 4.17%

C. 3.68%

D. 6.20%

Reference no: EM131851711

Questions Cloud

Suppose the quote on pounds : Suppose the quote on pounds is $1.624-1.631 (bid-ask). If you converted $10,000 to pounds and then back to dollars, how many dollars would you end up with?

How much will it reduce amount of time left to pay off loan : You have some extra cash this month and you are considering putting it toward your car loan. how much will it reduce amount of time left to pay off your? loan?

What is the implicit borrowing rate being paid by customers : What is the implicit borrowing rate being paid by customers who choose to defer payment for the month?

Calculate repricing gap and impact on net interest income : Calculate the repricing gap and the impact on net interest income of a 400 basis points increase in interest rates

What’s the bond current yield and capital gain yield : The bond currently sells for $1318. What’s the bond’s current yield, and capital gain yield? What’s the bond’s yield to maturity?

Prepare financial plan for a mobile lawn repair company : Prepare a Financial Plan for a Mobile Lawn Repair Company. technology needed to diagnose and repair lawn equipment at customer's residence or business.

What is beta of your portfolio : You construct a portfolio to match your friend's return. What is the beta of your portfolio?

The portfolio weight on the squirrel position is nothing : You have a portfolio of two? stocks: one long position and one short position. The portfolio weight on the Squirrel position is nothing.

The transaction fees are reflected in the exchange rate : If you have $100, how many euros will you receive (the transaction fees are reflected in the exchange rate)?

User Account

All Pages