Question
A 15 -ear 8% coupon (semiannual) bond sells for $1050, what is the bond holders YTM? On the issue date, you bought a 15-year maturity,
A 15 -ear 8% coupon (semiannual) bond sells for $1050, what is the bond holders YTM? On the issue date, you bought a 15-year maturity, 6.75% semi-annual coupon bond. The bond then sold at YTM of 6.25%. Now, 4 years later, the similar bond sells at YTM of 5.75%. If you hold the bond now, what is your realized rate of return for the 4-year holding period?
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
7th Edition
1259919714, 978-1259919718
