Question
A coupon bond has a par value of $1,000 and an annual coupon rate of 2%. The current price of the bond is $1,020. The
A coupon bond has a par value of $1,000 and an annual coupon rate of 2%. The current price of the bond is $1,020. The bond pays coupons semiannually. Suppose that the bond price becomes $960 six months later. What is the holding period return on the bond for a period between now and six months later?
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Investments
Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey
6th Edition
8120321014, 978-8120321014
