Localfund.com - All about Fund and Investment
*Home>>>Bond Investment

Tough finance question dealing with rate of return, bond price and holding period yield?

Question Details: I have tried to answer the following three questions with my BA ii calculator but cannot figure them out. Can someone tell me how to figure out the questions below, using a BA ii calculator?

Thanks very much ---

The YTM on a bond is the interest rate you earn on your investment if interest rates don't change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY).

Please answer to two decimals.

a) Suppose that today you buy a 7.5 percent coupon bond making annual payments of $737. The bond has 17 years to maturity. What rate of return do you expect to earn on your investment?

b) 4 years from now, the YTM (yield to maturity)
on your bond has declined by 1.40 percent, and you decide to sell. What price will your bond sell for?

c) In part B, what is the HPY (holding period yield ) on your investment?

You should post this on invesment, not insurance.

Tags
　　Business Investment 　　Business financing 　　Business Invest 　　Business Debt 　　Bond Investment 　　Angel Funds 　　Alternative Investment
Related information
  • Which type of investment is best?

    the STOCK MARKET is really one good source of making money. but there is really a DEFLATION worldwide so better invest only a smally amt. to roll over with. well, another best way is save and inves...

  • Please let me know the addresses of NHAI and REC for investment of capital gains tax bonds in mumbai and pune.

    you can contact broker or can contact at me mumbai

    ...
  • Is this a reasonable investment stategy?

    I think your strategy is fine. It's quite conservative and seems to be far more structured towards the protection of principle rather than principle growth. Bonds are not the oppossite of st...

  • Why has there been a deeper structural change in the investment markets in favour of bonds?

    Could be a lot of factors. I would say now it is Interest Rates. Investors may be Speculating that rates will soon go up. Normally when interest rates rise you will see negative fluctuations in the...

  • Does anyone think that the 30 year savings bonds are good for long term investment/savings?

    The 401k is great if the employer provides some kind of match. If you are looking to buy some government bonds, I would go with the I bond which currently has an interest rate of 6.73% Check out ...

  • How do savings bonds work? Is it a good investment for the future? Is it a good b-day gift for a 2 yr. old?

    Used to be HH bonds, Now EE and II bonds. You pay 50 for 100 at maturity: or 100 for 200 at maturity: or 250 for 500 at maturity: or 500 for 1,000 at maturity. Maturity generally being 30 ye...

  • Best investment?

    Sometimes its hard to compare funds when you don't get a proper " symbol" from the plan provider...and also no one knows how old you are... ( makes a big diff)...but I'll just a...

  • Can I open a SEP IRA (business retirement account) with a U.S. investment firm if I have a business in Mexico?

    the way i read the tax law you should be able to -== if i am wrong i know you can but it in a regular or roth ira or both!!!

    ...
    • 　

    Categories--Copyright/IP Policy--Contact Webmaster