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Five years ago, John bought the annual - coupon bond of XYZ . The coupon rate is 9 % . Five years ago, the yield
Five years ago, John bought the annualcoupon bond of XYZ The coupon rate is Five years ago, the yieldtomaturity of XYZ was and the years to maturity of the bond was John has already held it for five years as of today and he is selling XYZ bond today. He reinvested the coupon at the rate of per year over the past five years. The current yieldtomaturity is Par value is $ What is the geometric rate of return of the investment? Initial Investment I FV from coupon reinvestments Price of bond five years later Total ending value EV Rg
Five years ago, John bought the annualcoupon bond of XYZ The coupon rate is Five years ago, the yieldtomaturity of XYZ was and the years to maturity of the bond was John has already held it for five years as of today and he is selling XYZ bond today. He reinvested the coupon at the rate of per year over the past five years. The current yieldtomaturity is Par value is $
What is the geometric rate of return of the investment?
Initial Investment I
FV from coupon reinvestments
Price of bond five years later
Total ending value EV
Rg
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