Question
A three-year 9% bond is trading at par of $5,000. If you buy the bond expecting to hold it to maturity and believe you can
A three-year 9% bond is trading at par of $5,000. If you buy the bond expecting to hold it to maturity and believe you can reinvest the $225 semi-annual coupon payments at a 3.5% semi-annual rate through maturity. The total return on this investment is _____ annually.
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Global Finance
Authors: Robert Holton
1st Edition
0415619165, 978-0415619165
