Question
QUESTION 20: Alex buys an annual $100 bond with a 6% coupon when interest rates are 10% p.a. At this point in time, the bond
QUESTION 20: Alex buys an annual $100 bond with a 6% coupon when interest rates are 10% p.a. At this point in time, the bond has 10 years until maturity. Interest rates decrease by 5% p.a. immediately after Alex's purchase and remain constant until he sells it in 3 years time. What is your Realised Compound Yield (RCY) on this bond?
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The F And I Revolution Finance Reimagined
Authors: Michael A Bennett
1st Edition
1507777221, 978-1507777220
