[Solved] What is the realized rate of return for those investors who bought the bonds for $1,000 when they were issued.

What is the realized rate of return for those investors who bought the bonds for $1,000 when they were issued.
What is the realized rate of return for those investors who bought the bonds for $1,000 when they were issued?
Estimating the current value and YTM in the given cases assumed Venture Healthcare sold bonds that have a 10-year maturity, a 12% coupon rate with annual payments, and a $1,000 par value. Suppose that two years after the bonds were issued, the required interest rate fell to 7%. What would be the value of the bonds? Suppose that two years after the bonds were issued, the required interest rate rose to 13%. What would be the value of the bonds? What would be the value of the bonds three years after issue in each scenario above, assuming that interest rates stayed steady at either 7% or 13%?Twin Oaks Center has a bond issue outstanding with a coupon rate of 7% and 4 years remaining until maturity. The par value of the bond is $1,000, and the bond pays interest annually.a) what is the current value of the bond if present market conditions justify a 14% required rate of return?b)If Twin Oaks’ four-year bond had semiannual coupon payments. What would be it current value?c) Assume that it had a semi-annual coupon but 20 years remaining to maturity. What is the current value under these conditions? (Assuming a 7% semiannual required rate of return).Minneapolis health system has bonds outstanding that have four years remaining to maturity, a coupon interest rate of 9% paid annually and a $1,000 par value.a) What is the yield to maturity on the issue if the current market price is $829b) If the current market price is $1104c) Would you be willing to buy one of these bonds for $829 if you required a 12% rate of return on the issue?Six years ago, Bradford Hospital issued 20 year municipal bonds with a 7% annual coupon rate. The bonds were called today for a $70 call premium- that is, bondholders received $1070 for each bond.What is the realized rate of return for those investors who bought the bonds for $1,000 when they were issued.

 
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