Question
Homer Simpson bought a 20 year to maturity bond from Doh! a year ago for $1100. This bond has a par value of $1,000 with
Homer Simpson bought a 20 year to maturity bond from Doh! a year ago for $1100. This bond has a par value of $1,000 with a coupon rate of 7.5% and makes annual coupon payments. Today Homer needs money to buy pork rinds and wants to sell the bond, and the bond's yield to maturity is 6%.
What return would Homer earn by selling the bond today?
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Introduction to Operations Research
Authors: Frederick S. Hillier, Gerald J. Lieberman
10th edition
978-0072535105, 72535105, 978-1259162985
