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A man buys a corporate bond from a bond brokerage house for $875. The bond has a face value of $1000 and a 4% coupon
A man buys a corporate bond from a bond brokerage house for $875. The bond has a face value of $1000 and a 4% coupon rate paid semiannually. If the bond will be paid off at the end of 12 years, what rate of return will the man receive? Hint: The annual rate of return is between 6% and 8%. A man buys a corporate bond from a bond brokerage house for $875. The bond has a face value of $1000 and a 4% coupon rate paid semiannually. If the bond will be paid off at the end of 12 years, what rate of return will the man receive? Hint: The annual rate of return is between 6% and 8%
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