Question
An investor is considering the purchase of a(n) 7.000%, 18-year corporate bond that's being priced to yield 9.000%. She thinks that in a year, this
An investor is considering the purchase of a(n) 7.000%, 18-year corporate bond that's being priced to yield 9.000%. She thinks that in a year, this bond will be priced in the market to yield 8.000%. 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 $_________ (round to the nearest cent)
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Financial Management Principles And Practice
Authors: Timothy Gallagher
6th Edition
1930789157, 978-1930789159
