Question
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
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?
An investor buys a $1000 face value bond paying a semi-annual coupon at 9% APR compounded semi-annually for $1500. 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?
please answer both
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School Finance A Policy Perspective
Authors: Allan Odden, Lawrence Picus
6th Edition
1259922316, 9781259922312
