Question
A $5,000 face value industrial bond can be purchased for $4,920. Its interest rate is 8% and it pays interest semiannually and will mature in
A $5,000 face value industrial bond can be purchased for $4,920. Its interest rate is 8% and it pays interest semiannually and will mature in eight years.
What is the effective rate of return on the bond?
What is the effective rate of return that the purchaser can expect to receive if the bond is purchased?
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Financial Analysis With Microsoft Excel
Authors: Timothy R. Mayes
9th Edition
0357442059, 9780357442050
