A $1,000 Par, Disney bond with a 3.5% Coupon will mature in 10 years. The coupon payments are made annually at the end of the year. If you buy the above bond when its yielding 3% and sell it 5 years from now when its yielding 3.25%, what will be your profit or loss in dollars? If a loss, use the '-' sign No dollar signs.
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A $1,000 Par, Disney bond with a 3.5% Coupon will mature in 10 years. The coupon payments are made annually at the end of the year. If you buy the above bond when its yielding 3% and sell it 5 years from now when its yielding 3.25%, what will be your profit or loss in dollars? If a loss, use the '-' sign No dollar signs.
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- A bond with a face value of $5,000 pays interest of 8% per year. This bond will be redeemed at par value at the end of its 20-year life, and the first interest payment is due one year from now. Solve, (a) How much should be paid now for this bond in order to receive a yield of 10% per year on the investment? (b) If this bond is purchased now for $4,600, what annual yield would the buyer receive?USE THE FOLLOWING INFORMATION FOR THE NEXT 3 QUESTIONS: Part 1 of 3: Assume that you purchase a 30-year $1,000 par value bond, with a 10% coupon, and a yield of 9%. Immediately after you purchase the bond, yields change to 7% and remain at that level to maturity. Assume that you hold the bond for 8 years and then sell it. Interest is paid annually. What is the price of the bond today? Group of answer choices A. $1,991.87 B. $1,538.14 C. $1.732.51 D. $1,102.74 E. $1,225.16Please show work other than in excel. Assume that you purchase a 30-year $1,000 par value bond, with a 10% coupon, and a yield of8%. Immediately after you purchase the bond, yields change to 8% and remain at that level tomaturity. Assume that you hold the bond for 6 years and then sell it. Interest is paid annually.What is the price of the bond today?What is the price of the bond after 7 years?Now, calculate the realized horizon yield for this bond if you hold it for 7 years and then sell it.
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