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lclaudettecarte3550
16.11.2019 •
Business
Abond has a face value of $1,000, a coupon of 5% paid annually, a maturity of 34 years, and a yield to maturity of 8%. what rate of return will be earned by an investor who purchases the bond for $652.39 and holds it for 1 year if the bond’s yield to maturity at the end of the year is 9%? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places. negative amount should be indicated by a minus sign.)
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Ответ:
- 3.21%
Explanation:
In this question, we use the PV formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Future value = $1,000
PMT = 1,000 × 5% = 50
NPER = 34 years - 1 year = 33 year
Rate of interest = 9%
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value would be $581.42
Now the return would be
= Sale price + interest - purchase price
= $581.42 + $50 - $652.39
= -$20.97
And, the total return would be
= Return ÷ purchase price
= -$20.97 ÷ $652.39
= - 3.21%
Ответ: