Question
1. Russia issued a 10-year US dollar bond at $98 with a 7% coupon that's paid semi-annually. Six month after issuance, the bond price reached
1. Russia issued a 10-year US dollar bond at $98 with a 7% coupon that's paid semi-annually. Six month after issuance, the bond price reached $103. The investor's:
Group of answer choices
a. Annual Yield at purchase = 7%
b. Annual Yield after six months 7.14%
c. Annual Yield after six months 6.80%
d. Annual Yield at purchase 7.14%
e. ONLY C & D
f. None of the above
2. Russia issued a 10-year US dollar bond at $98 with a 7% coupon that's paid semi-annually. Six months after issuance, the bond price reached $103. The investors:
Group of answer choices
a. Return after six months = 7%
b. Return is 5.1% in capital gains and 7.14% in coupon payment
c. Return 5.1% in capital gains and 3.57% in coupon payment
d. Total return = $8.50 or 8.67% ROI
e. All of the above
f. ONLY C & D
g. None of the above
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