Question
A mortgage bond issued by Automation Engineering is for sale for $7,800. The bond has a face value of $10,000 with a coupon rate of
A mortgage bond issued by Automation Engineering is for sale for $7,800. The bond has a face value of $10,000 with a coupon rate of 7% per year, payable monthly. What rate of return will be realized if the purchaser holds the bond to maturity 9 years from now?
The rate of return will be __% per year.
Can you write down the calculation?
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The Dark Side Of Valuation
Authors: Aswath Damodaran
3rd Edition
0134854101, 9780134854106
