What will be the rate of return in Example 16.6 if the manager forecasts that in 2

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What will be the rate of return in Example 16.6 if the manager forecasts that in 2 years the yield on 18-year bonds will be 10%, and that the reinvestment rate for coupons will be 8%?

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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