Question
A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $112 and is selling at face value. What will be the
A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $112 and is selling at face value. What will be the annual rate of return on the bond if its yield to maturity at the end of the year is 6%? 11.2%? 13.2%?
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Lectures On Public Economics
Authors: Anthony B. Atkinson, Joseph E. Stiglitz
1st Edition
0691166412, 978-0691166414
