Question
A coupon-bearing bond purchased when issued at par value was held until maturity during which time interest rates rose. The ex-post realized return of the
A coupon-bearing bond purchased when issued at par value was held until maturity during which time interest rates rose. The ex-post realized return of the bond investment most likely was:
a) above the YTM at the time of issue
b) below the YTM at the time of issue
c) equal to the YTM at the time of issue because the bond was held until maturity
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Statistics For Business And Economics
Authors: Paul Newbold, William Carlson, Betty Thorne
8th Edition
0132745658, 978-0132745659
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