You purchased a 5-year, 6% annual-coupon bond with $1,000 par value. The yield to maturity at the time of purchase was 4%. You sold the bond after one year, right after receiving the first coupon payment. The bond's yield to maturity was 3.4% when you sold it. What is your holding period return on the bond
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Ответ:
6.12%
Explanation:
the market value of the bond when you purchased it was:
PV of face value = $1,000 / 1.04⁵ = $821.93
PV of coupon payments = $60 x 4.4518 (PV annuity factor, 4%, 5 periods) = $267.11
initial investment = $1,089.04
after 1 year, you receive $60 +
PV of face value = $1,000 / 1.034⁴ = $874.82
PV of coupon payments = $60 x 3.6818 (PV annuity factor, 3.4%, 4 periods) = $220.91
market price = $1,095.73
total holding return = ($1,095.73 + $60 - $1,089.04) / $1,089.04 = 6.12%
Ответ:
see explanation
Step-by-step explanation:
Under a reflection in the x- axis
a point (x, y ) → (x, - y ) , then
A (- 1, - 17 ) → A' (- 1, 17 )
B (0, - 12 ) → B' (0, 12 )
C (- 5, - 11 ) → C' (- 5, 11 )
D (- 6, - 16 ) → D' (- 6, 16 )