Question
An investor purchases a just-issued 10-year, 9.500% semiannual coupon note at 97.805 percent of par value and sells it after 5 years. The bonds yield
An investor purchases a just-issued 10-year, 9.500% semiannual coupon note at 97.805 percent of par value and sells it after 5 years. The bonds yield to maturity is 9.850% at time of sale, and rises to 10.100% immediately after the purchase but before the first coupon is received. Assume all coupons are reinvested to maturity at the new yield to maturity. What is the realized rate of return (horizon yield) after 5 years?
A. | 9.770% | |
B. | 9.850% | |
C. | 9.973% | |
D. | 10.100% |
You initiated a transaction to purchase a 3.750% semiannual coupon 20-year Corporate Bond on Tuesday Jun 27 , 2017. The maturity date of the bond is 11/15/2032 and its yield to maturity is 3.600%. What is the clean price of the bond on the settlement date in % of PAR?
101.750 | ||
101.756 | ||
102.100 | ||
102.154 |
Just post which one is the correct option. Don't have to show work.
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