Question
An investor buys a $1000 face value bond paying a semi-annual coupon at 9% APR compounded semi-annually for $700. Four years later, just after receiving
An investor buys a $1000 face value bond paying a semi-annual coupon at 9% APR compounded semi-annually for $700. Four years later, just after receiving his 8th coupon payment, the investor sells the bond for $924.00. What realized yield did the investor earn, stated as an APR with semi-annual compounding?
An investor buys a $1000 face value bond paying a semi-annual coupon at 9% APR compounded semi-annually for $1250. Four years later, just after receiving his 8th coupon payment, the investor sells the bond for $924.00. What realized yield did the investor earn, stated as an APR with semi-annual compounding?
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
