You are in desperate need of cash, and you go see Nicky Eyes…
You are in desperate need of cash, and you go see Nicky Eyes (“What’s up, guy?”) to borrow $1000. He demands that you pay him back $1250 in exactly one week, or bad things will happen. What is the EAR/EFF of this loan? There are 52 weeks in a year. (Hint: calculate the APR of this loan, then use the EFFECT function.)
Read DetailsWhat is the YTM on a 10-year bond with an 8% annual coupon r…
What is the YTM on a 10-year bond with an 8% annual coupon rate, face value of $1000 and price of $1250? The bond makes semi-annual coupon payments. Input your answer as a percentage rounded to three decimal places (i.e. .12345 or 12.345% would be entered as 12.345, for example)
Read DetailsFifteen years ago, you bought a 30-year bond for $750. The a…
Fifteen years ago, you bought a 30-year bond for $750. The annual coupon rate is 8%, the bond makes annual coupon payments, and the face value of the bond is $1000. Today, you sold the bond (with 15 years left until maturity) at a yield of 6%. What was your annual Holding Period Return (HPR)? Please write your answer in percentage terms to two decimal places (7.21 percent is 7.21, not 0.0721)
Read Details