2 years ago, you acquired a 10-year 0% coupon, $1000 face value bond at a YTM of 12%. Today, you sold this bond at a YTM of 8%. Calculate your annualized Horizon Yield [HY] Assuming sem-annual compounding: answer 28.7842% With a financial calculator, how do you find this?

Bonds of RCY Corporation with a face value of $1000 sells for $960, mature in 5 years, and have a 7% coupon rate paid semiannually. Calculate the investor's RCY by assuming the following:

- Bond sold to yield at 7% and the end of the 3-year holding period. - Reinvestment rate 6% APR during this holding period.

Answers:

annual compounding 8.5058%

semi-annual compounding 8.3322%

$226.3943 = FVA (coupons)

$1,226.3943 = Total Return

How ere these found? Use financial calculator