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.)

 

Total portfolio is $6,900 + $9,300 + $3,600 = $19,800
Company G weight= $6,900 / $19,800 = .35
Company S weight = $9,300 / $19,800 = .47
Company N weight = $3,600 / $19,800 = .18
So Portfolio Return is .35 × 8.55% + .47 × -1.63% + .18 × -.10% = 2.21%

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 intermediate steps. Round your final answer to 2 decimal places.)

 

gain = end of year value – beginning of year value
= 199.40/183.50 × $1,000 − 190.6/183.5 × $1,000 = $1,086.65 − $1,038.69 = $47.96
As a percentage, the gain was = $47.96 ÷ $1,038.69 = 4.62%

What’s the current yield of a 5.75 percent coupon corporate bond quoted at a price of 103.05?

What’s the current yield of a 5.75 percent coupon corporate bond quoted at a price of 103.05?

5.75% ÷ 103.05% = 0.055798 = 5.58%.

 

What’s the current yield of a 6.50 percent coupon corporate bond quoted at a price of 98.65? (Round your answer to 1 decimal place.)

What’s the current yield of a 6.50 percent coupon corporate bond quoted at a price of 98.65? (Round your answer to 1 decimal place.)

 

6.50% ÷ 98.65% = .06589 = 6.6%

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 the Bond = Principal Amount + Call Premium

= 1000 + ( 1000 * 4.25%)

= 1000 + 42.5

= $ 1042.5

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.)

 

Use equation 6.4:
Equivalent taxable yield =Muniyield1taxrate=5.00%1.33=7.46%Equivalent taxable yield =Muni⁢  yield1−tax⁢  rate=5.00%1−.33=7.46% 

A bond issued by a corporation on September 1, 1989 is scheduled to mature on September 1, 2039. If today is September 2, 2009, what is this bond’s time to maturity?

A bond issued by a corporation on September 1, 1989 is scheduled to mature on September 1, 2039. If today is September 2, 2009, what is this bond’s time to maturity?

 

September 1, 2039 – September 2, 2009 = 30 years

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

Which of the following options is a trait of Mannerism?

Which of the following options is a trait of Mannerism?

Which of the answer choices did NOT influence artistic development during the Dutch Republic?

Which of the answer choices did NOT influence artistic development during the Dutch Republic?