Question
Anna bought a bond with a par value of $10,000 and a coupon rate of 8% at par. After a year, she was able to
Anna bought a bond with a par value of $10,000 and a coupon rate of 8% at par. After a year, she was able to sell her bond for $11,000. Calculate the rate of return on Anna’s investment. What is the current yield and capital gain on her investment?
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The coupon amount that Anna received after a year is 10000 8100 800 ...
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
