Question
Bond X has the following characteristics 5 years until maturity Annual Compounding Coupon 9 % Par 100 YTM 6 % Bond Price $112.637 Assume rates
Bond X has the following characteristics
5 years until maturity
Annual Compounding
Coupon 9 %
Par 100
YTM 6 %
Bond Price $112.637
Assume rates (YTM) go up to 8% immediately after you purchase the bond but before the first coupon payment. If you sell the bond at the end of 3 Years, what will your Horizon Return be at that time?
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Investments An Introduction
Authors: Herbert B Mayo
11th Edition
1133936520, 9781133936527
