Question
7-33: Marty bought a 6.75%, $10000 20-year bond for $7500 with 18 years maturity. The interest was payable quarterly and was based on the $10000.
7-33: Marty bought a 6.75%, $10000 20-year bond for $7500 with 18 years maturity. The interest was payable quarterly and was based on the $10000. The bond was kept for only 12 years and sold for $8750 immediately after the 48th interest payment was received.
(a) What is the nominal rate of return per year were made on this investment? Answer: <7 pts> Reasoning/Work:
(b) What is the effective rate of return per year were made on this investment? Answer: <3 pts> Reasoning/Work:
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Distressed Debt Analysis Strategies For Speculative Investors
Authors: Stephen Moyer
1st Edition
1932159185, 978-1932159189
