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please help ASAP. Seven years ago, Embraer issued a semi-annual coupon bond with 11 years to maturity. The bond was originally issued at par with
please help ASAP.
Seven years ago, Embraer issued a semi-annual coupon bond with 11 years to maturity. The bond was originally issued at par with a $1,000 face value. The coupon rate on the bond is 8% and the yield to maturity is currently 7% (for all maturities). Assume an investor bought the bond when it was issued seven years ago and sells the bond today. What would be the investors capital gain or loss (in %) for the complete investing period? Note, to answer this question you can ignore past received coupon payments. (Note: please retain at least 4 decimal places in your calculations and at least 2 decimal places in the final answer.) The 7-year capital gain or loss in percentage terms is %. Assume an investor constructs a portfolio by buying two shares of ABC stock at a Price of $35 per Share, a put option with strike price $40 on this stock, and simultaneously selling a call option with strike price $40 on this stock. The premium for the put option is $1 and the premium for the call option is $0.98. Each option is based on one ABC stock (NOT a bundle of 100) and each option has the same maturity date. What is the profit/loss of this portfolio when the market price of ABC stock is $37.32 at the expiration of both options and you are liquidating the portfolio with no transaction costs. (Please retain at least 4 decimal places in your calculation and at least 2 decimal places in the final answer.) The profit/loss of this portfolio is $
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