Question
On the issue date, you bought a 20-year maturity, 6% semi-annual coupon bond. The bond then sold at YTM of 7%. Now, four years later,
On the issue date, you bought a 20-year maturity, 6% semi-annual coupon bond. The bond then sold at YTM of 7%. Now, four years later, the similar bond sells at YTM of 5%. If you hold the bond now, what is your realized rate of return for the 4-year holding period
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
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