Question
Last year, Edna purchased a $1,000 face value corporate bond with an 11.2 percent annual coupon rate and a 14-year maturity. At the time of
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Last year, Edna purchased a $1,000 face value corporate bond with an 11.2 percent annual coupon rate and a 14-year maturity. At the time of the purchase, it had an expected yield to maturity of 11.7 percent. If Edna sold the bond today for $929.20, what rate of return would she have earned for the past year?
a. 11.20%
b. 8.06%
c. 3.84%
d. 7.36%
e. 7.75%
Last year, Edna purchased a $1,000 face value corporate bond with an 11.2 percent annual coupon rate and a 14-year maturity. At the time of the purchase, it had an expected yield to maturity of 11.7 percent. If Edna sold the bond today for $929.20, what rate of return would she have earned for the past year?
| a. | 11.20% | |
| b. | 8.06% | |
| c. | 3.84% | |
| d. | 7.36% | |
| e. | 7.75% |
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Your Financial Well Being How To Get Your Financial Well Being With Smart Spending Habits
Authors: Fransisca Patten
1st Edition
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