Compute the total dollar return from both capital gainloss


Compute the total dollar return from both capital gain/loss and coupon interest if the bond was purchased at par on issue date and held to maturity.

Term to Maturity                             2 years

Par Value                                        $1,000

Current Price (1 year to maturity)        $963

Coupon Rate                                     `5.00%

a) $63

b) $137

c) $100

d) $3.51

You purchase a bond with a coupon rate of 6.25% and a par value of $1,000. There are 53 days to the next semiannual coupon payment date and the total number of days in the period is 182. What is the accrued interest amount?

a) $31.25

b) $9.10

c) $22.15

d) $62.50

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Financial Management: Compute the total dollar return from both capital gainloss
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