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Assume that you invest 5-year bonds with face amount of $1,000 and coupon rate of 10% at $1,000. If market interest rates decrease to 8%
Assume that you invest 5-year bonds with face amount of $1,000 and coupon rate of 10% at $1,000. If market interest rates decrease to 8% one year later, what is your rate of return? (A) 16.62%. (B) -25.9%. (C) 8.20%. (D) -30.3%. (E) -15.9%. answer A why
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