Question
LRQ Inc. bonds was issued on Oct 15th, 2010. The bonds have a coupon rate of 4.8%, with interest paid annually. The par value of
LRQ Inc. bonds was issued on Oct 15th, 2010. The bonds have a coupon rate of 4.8%, with interest paid annually. The par value of the bonds is $1,000 and the maturity is Oct 15th, 2035. If the market price of one contract of LRQ Corporation bond on Oct 15th, 2020 is $950, what is the annual interest rate to be earned by an investor who bought it on Oct 15th, 2020 at the said market price and plan to hold on to the bond till maturity? Round to the 0.01%, i.e., two decimal places. Enter your answer in the form of a percentage. For example, if your answer is "12.34%", enter "12.34"
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started