Question
4. Jorge Cabrera paid $980 for a 15-year bond 10 years ago. The face value of the bond is $1,000. The bond pays a coupon
4.
Jorge Cabrera paid $980 for a 15-year bond 10 years ago. The face value of the bond is $1,000. The bond pays a coupon of 8 percent semi-annually. Today, the bond is priced at $1,254.36. If he sold the bond today, what would be his realised yield? (Round to the nearest percent.)
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
11th Canadian Edition
1259024970, 978-1259265921
