Josh Kavern bought 10-year, 10.0 percent coupon bonds issued by the U.S. Treasury three years ago at
Fantastic news! We've Found the answer you've been seeking!
Question:
Josh Kavern bought 10-year, 10.0 percent coupon bonds issued by the U.S. Treasury three years ago at $900.00. If he sells these bonds, for which he paid the face value of $1,000, at the current price of $800.00, what is his realized yield on the bonds? Assume similar coupon paying bonds make annual coupon payments.(Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.)
Realised rate of return | % |
Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
Posted Date: