Question
Four years ago, James, Inc issued a bond with a par value = $1,000, Coupon rate = 5.0% annum, payable every 6-months, and a maturity
Four years ago, James, Inc issued a bond with a par value = $1,000, Coupon rate = 5.0% annum, payable every 6-months, and a maturity of 20-years. The YTM of similar bonds today is 9.0%. Johnny bought James Bond at $950 when it was originally issued (20-years ago). If he holds on to James bond until it matures, what rate of return will he earn?
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Stocks Bonds And Taxes A Comprehensive Handbook And Investment Guide For Everybody
Authors: Phillip B. Chute
1st Edition
1732885532, 978-1732885530
