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Easy Button, Inc purchases a 3-year maturity bond for $30,261 of market value with par value of $30,000. The coupon of the bond is 2.0%
Easy Button, Inc purchases a 3-year maturity bond for $30,261 of market value with par value of $30,000. The coupon of the bond is 2.0% which pays Annually, the yield is 1.70% and a realistic reinvestment rate is 2.0%. All rates are quoted as annual figures.
Given this information, please calculate the annual return on this bond if it is held to maturity and all cash receipts are reinvested at 2.0%.
1.719% | ||
1.706% | ||
5.205% | ||
1.672% |
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