Question
You bought a bond five years ago for $880 per bond. The bond is now selling for $860. It also paid $65 in interest per
You bought a bond five years ago for $880 per bond. The bond is now selling for $860. It also paid $65 in interest per year, which you reinvested in the bond. Calculate the realized rate of return earned on this bond. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
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BSW Corporation has a bond issue outstanding with an annual coupon rate of 7.2 percent paid quarterly and four years remaining until maturity. The par value of the bond is $1,000. Determine the fair present value of the bond if market conditions justify a 15.5 percent, compounded quarterly, required rate of return. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
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