Question
14. Suppose that you buy a semi-annual coupon bond with coupon rate of 10%; the market price of $1,120, and the time to maturity of
14. Suppose that you buy a semi-annual coupon bond with coupon rate of 10%; the market price of $1,120, and the time to maturity of 17 years. Seven years from now, the YTM on your bond is expected to decline by 2%, and you plan to sell. What is the holding period yield (HPY) on your investment?
Could you explain the question in detail with formula plz! I don't understand others poster answers.
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick
1st Edition
0470074280, 9780470074282
