This topic contains a solution. Click here to go to the answer

Author Question: ABC Inc. issued at par value a 15-year, 7% semiannual coupon bond with a par value of $1,000. At the ... (Read 48 times)

poopoo

  • Full Member
  • ***
  • Posts: 159

Question 1

A zero coupon bond with a nominal $1,000 face value has 18 years to maturity and is issued with a price of $302.50. What is the implicit interest you earn on the bond in the first year of the bond’s life, keeping all other factors constant?

$68.68


$60.05


$20.78


$17.54



Question 2

ABC Inc. issued at par value a 15-year, 7% semiannual coupon bond with a par value of $1,000. At the end of 3 years the market interest increases to 9%. One year later, the market interest is 10%. If an investor purchases the bond at the end of year 3 and sells it 1 year later, how much is the capital gain or loss?

–$49.00


–$50.31


–$52.50


–$55.60



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by poopoo on Aug 7, 2023

Karla347

  • Full Member
  • ***
  • Posts: 151
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly




poopoo

  • Member
  • Posts: 159
Reply 2 on: Aug 7, 2023
Wow, this really help


steff9894

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

Your heart beats over 36 million times a year.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

For a complete list of videos, visit our video library