Question
A town wants to build a park for $400,000 and issues 400 bonds for $1000 each, with a term of 7 years and a coupon
A town wants to build a park for $400,000 and issues 400 bonds for $1000 each, with a term of 7 years and a coupon rate of 6%. Consider the purchase of one such bond.
a What is the total return of this investment?
b. What is the average rate of return?
a. The total return is $________.
b. The average rate of return is _________%.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
