BT301 - Introduction to Biotechnology
Question(s) similar to the following:
Ahmad purchases a 10 year 8% coupon bond with the face value of $100. He wants to hold this bond for 1-year and then sells a 9-year bond after 1-year.
(i) If interest rate does not change then what will be the rate of return?
(ii) If interest rate falls to 6% then suppose price increases to $109.16. What will be the capital gain after the price rise?
(iii) After the price rise, what will be the one year holding period return?
Question 1: Ahmad purchases a 10 year 8% coupon bond with the face value of $100. He wants to hold this bond for 1-year and then sells a 9-year bond after 1-year.
(i) If interest rate does not change then what will be the rate of return?
(ii) If interest rate falls to 6% then suppose price increases to $109.16. What will be the capital gain after the price rise?
(iii) After the price rise, what will be the one year holding period return?
Answer: Suggest Edit
Provide solution with reference to earn 1000 credits
Similar Questions:
Question 2: Ahmad purchases a 10 year 8% coupon bond with the face value of $100. He wants to hold this bond for 1-year and then sells a 9-year bond after 1-year.
(i) If interest rate does not change then what will be the rate of return?
(ii) If interest rate falls to 6% then suppose price increases to $109.16. What will be the capital gain after the price rise?
(iii) After the price rise, what will be the one year holding period return?
Answer: Suggest Edit
Provide solution with reference to earn 1000 credits
Past Papers of BT301 - Introduction to Biotechnology
(i) If interest rate does not change then what will be the rate of return?
(ii) If interest rate falls to 6% then suppose price increases to $109.16. What will be the capital gain after the price rise?
(iii) After the price rise, what will be the one year holding period return?
Question 1: Ahmad purchases a 10 year 8% coupon bond with the face value of $100. He wants to hold this bond for 1-year and then sells a 9-year bond after 1-year.
(i) If interest rate does not change then what will be the rate of return?
(ii) If interest rate falls to 6% then suppose price increases to $109.16. What will be the capital gain after the price rise?
(iii) After the price rise, what will be the one year holding period return?
Answer: Suggest Edit
Provide solution with reference to earn 1000 creditsSimilar Questions:
Question 2: Ahmad purchases a 10 year 8% coupon bond with the face value of $100. He wants to hold this bond for 1-year and then sells a 9-year bond after 1-year.
(i) If interest rate does not change then what will be the rate of return?
(ii) If interest rate falls to 6% then suppose price increases to $109.16. What will be the capital gain after the price rise?
(iii) After the price rise, what will be the one year holding period return?
Answer: Suggest Edit
Provide solution with reference to earn 1000 creditsSponsored
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