Question
Gordon bought the following bond three years ago: The bond has a face value of $1,000 and pays interest semi-annually. Its price was $1,010, and
Gordon bought the following bond three years ago: The bond has a face value of $1,000 and pays interest semi-annually. Its price was $1,010, and it had a maturity of 6 years. The coupon rate is 6.20%. Gordon has reinvested the coupons received at an APR of 4.10% and sold the bond today for $1,150. What is his effective annual rate of return?
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The Municipal Budget Crunch A Handbook For Professionals
Authors: Roger L. Kemp
1st Edition
0786463740, 978-0786463749
