Entries by david mungai

At the beginning of the month, you owned $6,900 of Company G, $9,300 of Company S, and $3,600 of Company N. The monthly returns for Company G, Company S, and Company N were 8.55 percent, -1.63 percent, and -.10 percent. What is your portfolio return? (Round intermediate calculations to 2 decimal places.)

At the beginning of the month, you owned $6,900 of Company G, $9,300 of Company S, and $3,600 of Company N. The monthly returns for Company G, Company S, and Company N were 8.55 percent, -1.63 percent, and -.10 percent. What is your portfolio return? (Round intermediate calculations to 2 decimal places.)   Explanation Total […]

Consider a 3.75 percent TIPS with an issue CPI reference of 183.50. At the beginning of this year, the CPI was 190.60 and was at 199.40 at the end of the year. What was the capital gain of the TIPS in percentage terms? Assume semi-annual interest payments and $1,000 par value. (Do not round the intermediate steps. Round your final answer to 2 decimal places.)

Consider a 3.75 percent TIPS with an issue CPI reference of 183.50. At the beginning of this year, the CPI was 190.60 and was at 199.40 at the end of the year. What was the capital gain of the TIPS in percentage terms? Assume semi-annual interest payments and $1,000 par value. (Do not round the […]

A 4.25 percent corporate coupon bond is callable in four years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond?

A 4.25 percent corporate coupon bond is callable in four years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond?   Answer :- $ 1042.5 Price Paid to the Bondholder if the Issuer Calls […]

What’s the taxable equivalent yield on a municipal bond with a yield to maturity of 5.0 percent for an investor in the 33 percent marginal tax bracket? (Round your answer to 2 decimal places.)

What’s the taxable equivalent yield on a municipal bond with a yield to maturity of 5.0 percent for an investor in the 33 percent marginal tax bracket? (Round your answer to 2 decimal places.)   Explanation Use equation 6.4: Equivalent taxable yield =Muni  yield1−tax  rate=5.00%1−.33=7.46%Equivalent taxable yield =Muni⁢  yield1−tax⁢  rate=5.00%1−.33=7.46% 

Calculate the price of a zero coupon bond that matures in 5 years if the market interest rate is 6.50 percent. Assume semi-annual interest payments and $1,000 par value. (Round your answer to 2 decimal places.)

Calculate the price of a zero coupon bond that matures in 5 years if the market interest rate is 6.50 percent. Assume semi-annual interest payments and $1,000 par value. (Round your answer to 2 decimal places.)   use semi-annual compounding: PV =FVN(1+i)N=$1,0001.032510=$1,0001.3769=$726.27