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Consider a corporate bond that was purchased last year with a face value of $1,000,8% annual coupon rate and a 14 -year maturity. At the

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Consider a corporate bond that was purchased last year with a face value of $1,000,8% annual coupon rate and a 14 -year maturity. At the time of purchase, the bond had an expected yeld to maturity of 7%. Calculate the rate of return that would have been earned for the past year if the bond was sold today for $1,080,40. In order to use your financial calculator to solve for the rate of return on this bond, you need to know the following information: First, you must solve for the present value of the bond: Complete the following table by selecting the appropriate values for N,I/Y and PMT. Then use your financial calculator to solve for the present. walue of the bond, and complete the final row of the table. Now you have all of the information needed to calculate the rate of return that would have been earned for the past year if the bond was sold today for $1,080.40 : This bord is trading at a to par value, Therefore, it has an expected capital over time. According to the video, which of the following equations are used to calculate a bond's rate of return: Rate of Return =P0P1+PMT Rate of Return =P1P6N1+PMrT Rate of Return =P2P1P3+PMT Rate of Return =P0N2N0+PMr If your friend sold the bond today for $1,080,40, what is the dollar return she would have earned this past year? If your friend sold the bond today for $1,080.40, what is the rate of retum she would have earned this past year? Consider a corporate bond that was purchased last year with a face value of $1,000, a 9% annual coupon rate and a 12 -year maturity. At the time of purchase, the bond had an expected yield to maturity of 10%, Calculate the rate of return that would have been earned for the past year if the bond was sold today for $936.21

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