one year ago you bought a 10-year bond with 6% coupon rate (semi-annual payment) at the par value ($100) Right after you made the purchase, the market interest rate became 5%. If you've held the bond for one year, what is the new bond price and which of the following is correct about the one-year holding period yield? (assume that interest rate are compounded semi-annually)<\/p>
<\/p>
answer: The new bond price is 107.18 the one- year holding period return greater than 6%<\/p>
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explain with workings<\/p>", "transcribed_text": "", "related_book": { "title": "Managerial Accounting An Introduction to Concepts Methods and Uses", "isbn": "1111822239, 324639767, 9781111822231, 978-0324639766", "edition": "10th Edition", "authors": "Michael W. Maher, Clyde P. Stickney, Roman L. Weil", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/137.jpg", "uri": "\/textbooks\/managerial-accounting-an-introduction-to-concepts-methods-and-uses-10th-edition-137", "see_more_uri": "" }, "free_related_book": { "isbn": "0201534223", "uri": "\/textbooks\/calculus-student-solution-manual-part-i-2nd-edition-978-0201534221-141981", "name": "Calculus Student Solution Manual Part I", "edition": "2nd Edition" }, "question_posted": "2024-06-10 01:40:00", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/follower-abcd-is-held-against-circular-cam-by", "description": "A follower ABCD is held against a circular cam by a stretched spring, which exerts a force of 21 N for the position shown. 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