Question
A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $120 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 $120 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year is (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| Rate of Return | ||
| a. | 6% | % |
| b. | 12.0% | % |
| c. | 14.0% | % |
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Financial Management Principles And Practices
Authors: Timothy J. Gallagher
9th Edition
1954156103, 978-1954156104
