4. Bond Realized Returns

4. Bond Realized Returns - 74.30 74.30 74.30 74.30 74.30...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Bond Realized Returns 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 A B C D coupon = 7.43% par = $1,000 maturity = 15 yrs suppose that in suppose that in 2 years the mkt i 4 years the mkt i mkt i = 7.27% changes to 6.88% changes to 7.88% -1014.33 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 74.30 1,074.30 1,074.30 1,074.30 1,074.30 price yield to maturity price price $1,014.33 7.27% $1,046.28 $967.69 current yield capital gain capital gain 7.33% $31.95-$46.64 annual % annual % 1.58%-1.15% realized return realized return 8.90% 6.18%...
View Full Document

This note was uploaded on 09/27/2009 for the course UGBA 133 taught by Professor Distad during the Summer '08 term at Berkeley.

Ask a homework question - tutors are online