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A 2-year bond with par value $1,000 making annual coupon payments of $112 is priced at $1,000. (Round all your answers to 2 decimals.) What
A 2-year bond with par value $1,000 making annual coupon payments of $112 is priced at $1,000. (Round all your answers to 2 decimals.)
- What is the yield to maturity of the bond?
- After one year, you receive the coupon payment of the bond and you are reinvesting it into a 1-year zero coupon bond. You can reinvest it at an interest rate of 9.00%. (Now you have two investments, the remaining one year on the initial bond and the zero coupon bond with one year until maturity.)What is your holding period return (HPR) after two years?
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A Tiny Book On Personal Finance Saving And Investing Budget Save Invest Retire
Authors: David S. Shekmer
1st Edition
179576385X, 978-1795763851
