Six years ago, Bradford Hospital issued 20-year municipal bonds with a 7% annual coupon rate. The bonds
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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?
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...
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Call amount 1070 Coupon amount 70 Pur...View the full answer
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