Question
an investor pays income tax at 30% and is considering purchase of a $100, 11% bond which pays half-yearly interest, is redeemable at par in
an investor pays income tax at 30% and is considering purchase of a $100, 11% bond which pays half-yearly interest, is redeemable at par in exactly 5 years and is quoted on the market at $102. Calculate the net yield the investor would earn if the bond was held until maturity
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Fundamentals Of Corporate Finance
Authors: Berk, Peter DeMarzo, Jarrad Harford
3rd Global Edition
1292018402, 9781292018409
