Question
A bond that pays coupons annually is issued with a coupon rate of 4%, maturity of 30 years, and a yield to maturity of 7%.
A bond that pays coupons annually is issued with a coupon rate of 4%, maturity of 30 years, and a yield to maturity of 7%. What rate of return will be earned by an investor who purchases the bond and holds it for 1 year if the bond's yeild to maturity at the end of the year is 8%?
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The Money Markets Handbook A Practitioners Guide
Authors: Moorad Choudhry
1st Edition
0470821507, 978-0470821503
