Question
1)GM's coupon bond, which pays semiannual interest (182 days in the coupon period), has an ask price of 129.50% of its $1,000.00 par value. The
1)GM's coupon bond, which pays semiannual interest (182 days in the coupon period), has an ask price of 129.50% of its $1,000.00 par value. The coupon rate on the bond is 8.50% and the coupon payment was made one month ago (30 days). What is the invoice price of the bond?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
2)A GoodCredit company issued a bond with par value of $1,000.00, a time to maturity of 10.00 years, and a coupon rate of 8.10%. The bond pays interest annually. If the current market price is $810.00, what will be the approximate capital gain on this bond over the next year if its yield to maturity remains unchanged?NOTE:Capital gainis change in bond price.(Do not round intermediate calculations. Round your answer to 2 decimal places.) |
3)You buy a(n) six-year bond that has a 4.75% current yield and a 4.75% coupon (paid annually). In one year, promised yields to maturity have risen to 5.75%.What is your holding-period return?(Do not round intermediate calculations.Round your answer to 2 decimal places.)
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