Question
7. You buy a 5 year 10% coupon bond which pays annual coupons. When you buy the bond, the market interest rate is 9%. You
7. You buy a 5 year 10% coupon bond which pays annual coupons. When you buy the bond, the market interest rate is 9%. You decide to sell the bond 1 year later when the market interest rate is 10%. Assume you received one coupon payment. What is your rate of return?
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk
11th Edition
0324422865, 978-0324422863
