Question
An investor with a 1-year horizon purchases a 20-year bond with a 6% coupon (face value 100) and 6.5% yield. She sells the bond on
An investor with a 1-year horizon purchases a 20-year bond with a 6% coupon (face value 100) and 6.5% yield. She sells the bond on her horizon at a 6.75% yield. What is her Rate-of-Return (ROR)? 2. Suppose instead the bond's yield on the horizon date is 7.5%. What is her ROR?
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
21st Edition
1634602048, 978-1634602044
