Question
An investor is considering the purchase of a(n) 6.000%, 15-year corporate bond that's being priced to yield 8.000%. She thinks that in a year, this
An investor is considering the purchase of a(n)
6.000%,
15-year
corporate bond that's being priced to yield
8.000%.
She thinks that in a year, this bond will be priced in the market to yield
7.000%.
Using annual compounding, find the price of the bond today and in 1 year. Next, find the holding period return on this investment, assuming that the investor's expectations are borne out.
The price of the bond today is $ ?
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Marketplace Lending Financial Analysis And The Future Of Credit Integration Profitability And Risk Management
Authors: Ioannis Akkizidis, Manuel Stagars
1st Edition
1119099161, 978-1119099161
