Question
4.One year from now the bond will have 11 years until maturity. Assume market interest rates decrease to 5%. Given this: i.What will be the
4.One year from now the bond will have 11 years until maturity. Assume market interest rates decrease to 5%.
Given this:
i.What will be the bonds price one year from now?
j.If you purchased the bond at the price in (a)->1238.28 and sold the bond at the price in (i)what would be your capital gain (or loss) once you sold? What would be your annualized holding period return?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th Edition
1260772381, 978-1260772388
