Question
An investor buys a 4-year, 10% annual coupon bond with 5% yield. The investor plans to sell the bond in 2 years once the second
An investor buys a 4-year, 10% annual coupon bond with 5% yield. The investor plans to sell the bond in 2 years once the second coupon payment is received. Calculate
A) The purchase price of the bond
B) Calculate the horizon yield (total return) assuming that coupon reinvestment rate (YTM) after the bond purchase is 3%
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Private Debt Yield Safety And The Emergence Of Alternative Lending
Authors: Stephen L. Nesbitt
2nd Edition
1119944392, 978-1119944393
