Question
An investor is interested in purchasing a new 20-year government bond carrying a 10 percent coupon rate. The bond's current market price is $875 for
An investor is interested in purchasing a new 20-year government bond carrying a 10 percent coupon rate. The bond's current market price is $875 for a $1,000 par value instrument. If the investor buys the bond at the going price and holds to maturity, what will be his yield to maturity?
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Financial Management Principles And Applications
Authors: Arthur J. Keown
9th Edition
013033362X, 9780130333629
