Question
Part F.2 The following information is for solving Questions 49 to 52 On April 1 st , 2018, Yugo purchased a corporate bond of IJK
Part F.2
The following information is for solving Questions 49 to 52
On April 1st, 2018, Yugo purchased a corporate bond of IJK Limited for its face value of $1,000. The bond pays a 4.5 percent coupon rate, which are paid semi-annually, and it will be maturing on April 1st, 2028. On April 1st, 2020, similar bonds are paying a coupon rate of 2.5 percent, and Yugo plans to sell his bond.
Question 49
What would be the dollar amount of each semi-annual coupon, Yugo would receive?
Question 49 options:
| $45.00 |
| $22.50 |
| $40.00 |
| $20.00 |
| None of the Above |
Question 50
What would be the market price of the IJK bonds on April 1st, 2020, based on the market coupon rate?
Question 50 options:
| $1,038.78 |
| $1,000.00 |
| $990.59 |
| $995.15 |
| None of the Above |
Question 51
What would be the capital gains/loss ($ dollar amount) would Yugo receive from selling the IJK bond?
Question 51 options:
| $38.78 |
| $0.00 |
| -$94.10 |
| -$48.50 |
| None of the Above |
Question 52
What would be the capital gains/loss (% percent return) would Yugo receive from selling the IJK bond?
Question 52 options:
| -0.49% |
| 3.88% |
| -0.94% |
| 0.00% |
| None of the Above |
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