please explain the steps 1. Suppose you buy a 30 year,...
60.1K
Verified Solution
Question
Accounting
please explain the steps
1. Suppose you buy a 30 year, 7.5% annual coupon bond for $980 (when its YTM=7.67\%), and you plan to hold the bond for 20 years. Your forecast is that the bond's YTM will be 8% when it is sold and that the reinvestment rate on coupons will be 6%. What is the realized compound return.? 2. Consider a 30 year bond paying annual coupon of $80 and selling at par value of $1000. The bond's initial YTM is 8%. What is the HPR if yields at the end of the year increase to 9%

Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.