Question
No excel please! An investor purchases a bond with face value of 1000 at a discount of 50 to yield 10% payable semi-annually for 10
No excel please!
An investor purchases a bond with face value of 1000 at a discount of 50 to yield 10% payable semi-annually for 10 years. She reinvests the coupons in a sinking fund earning i (2) = 8%. What amount is in the sinking fund right after the last coupon is paid ? What is the investor's annual eective yield on the project ?
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An Introduction To Financial Markets A Quantitative Approach
Authors: Paolo Brandimarte
1st Edition
1118014774, 9781118014776
