标签：buy return option degree bonds coupon percent maturity bond
Assume you have the option to buy one of three bonds. All have the same degree of default risk
and mature in 15 years. The first is a zero-coupon bond that pays $1,000 at maturity. The
second has a 7 percent coupon rate and pays the $70 coupon once per year. The third has a 9
percent coupon rate and pays the $90 coupon once per year.
（转载自赶due论坛，更多题目请访问info.gandue.net）
a. If all three bonds are now priced to yield 8 percent to maturity, what are their prices?
b. If you expect their yields to maturity to be 8 percent at the beginning of next year, what will
their prices be then? What is your before-tax holding period return on each bond? If your tax
bracket is 30 percent on ordinary income and 20 percent on capital gains income, what will
your after-tax rate of return be on each? Assume you do not sell the bonds.
c. Recalculate your answer to (b) under the assumption that you expect the yields to maturity on
each bond to be 7 percent at the beginning of next year.
d. Re-do the calculations in parts b and c above, assuming you will sell the bonds at the end of the
year.
PLEASE DON'T SOLVE IT ON EXCEL, STEP-BY-STEP IS REQUIRED.
Yield to Maturity:
A bond's yield to maturity (YTM) is the inner pace of return expected for the current worth of all the future incomes of the bond (face worth and coupon installments) to approach the current bond cost. YTM expects that all coupon installments are reinvested at a yield equivalent to the YTM and that the security is held to development. 
3. Holding period return is the complete return gotten from holding a resource or arrangement of resources throughout some undefined time frame, known as the holding time frame, which is by and large communicated as a rate. Holding period return is determined based on absolute gain from the resource or portfolio. It is the gross rate of return before claiming any tax-related deductions from it. Therefore, the before-tax holding period return on each bond is the yield percent to maturity, i.e., 8%.
标签：buy,return,option,degree,bonds,coupon,percent,maturity,bond 来源： https://www.cnblogs.com/coursehero/p/16062378.html
本站声明： 1. iCode9 技术分享网（下文简称本站）提供的所有内容，仅供技术学习、探讨和分享； 2. 关于本站的所有留言、评论、转载及引用，纯属内容发起人的个人观点，与本站观点和立场无关； 3. 关于本站的所有言论和文字，纯属内容发起人的个人观点，与本站观点和立场无关； 4. 本站文章均是网友提供，不完全保证技术分享内容的完整性、准确性、时效性、风险性和版权归属；如您发现该文章侵犯了您的权益，可联系我们第一时间进行删除； 5. 本站为非盈利性的个人网站，所有内容不会用来进行牟利，也不会利用任何形式的广告来间接获益，纯粹是为了广大技术爱好者提供技术内容和技术思想的分享性交流网站。