Question
Consider an annual coupon bond with a face value of $ 100 100 , 8 8 years tomaturity, and a price of $ 88 88
Consider an annual coupon bond with a face value of $100
100, 8
8 years tomaturity, and a price of $88
88. The coupon rate on the bond is 7
7%. If you can reinvest coupons at a rate of 1.5
1.5% perannum, then how much money do you have if you hold the bond tomaturity?
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Practical Financial Management
Authors: William R. Lasher
8th edition
1305637542, 978-1305887237, 1305887239, 978-1305637542
