Question
Aunt Steve purchased an 8% coupon, 12-year maturity bond for $950. The coupons are paid annually. A year later , the bond price is $1,075.
Aunt Steve purchased an 8% coupon, 12-year maturity bond for $950. The coupons are paid annually. A year later, the bond price is $1,075. Round your answer to two decimals points.
a) What is the new YTM on the bond?
b) What is Aunt Mabel's rate of return over the year?
Answer %:
Answer %:
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Fundamentals Of Investments
Authors: Bradford Jordan, Thomas Miller
4th Edition
0073314978, 9780073314976
