Question
A three-year bond with par value of $1,000 making annual coupon payments of $100 is priced at $1,000. What will be the realized compound yield
| A three-year bond with par value of $1,000 making annual coupon payments of $100 is priced at $1,000. What will be the realized compound yield if the interest rate for years one and two equals 10%? | |||
|
| A) | 8% | |
|
| B) | 9% | |
|
| C) | 10% | |
|
| D) | 12% | |
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Fundamentals Of Financial Management
Authors: James C. Van Horne
10th Edition
0138596875, 9780138596873
