Question
Consider the following information on a non-callable bond: Annual coupon payments (C)= $120, Face value of bond (F) = $1000, Maturity date = 14 years,
Consider the following information on a non-callable bond:
Annual coupon payments (C)= $120, Face value of bond (F) = $1000, Maturity date = 14 years, Current price of bond (Pm) = $1200, Investors holding period (horizon) = 6 years; interest rate from years 7-14= 10%. What is the realized (horizon) yield of this bond?
| 8.253 | ||
| 8.968% | ||
| 8.35% | ||
| 9.251% |
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Essentials Of Corporate Finance
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
6th Edition
978-0073405131, 9780073405131
