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QUESTION 4 On June 1 st , 2020, Coca Cola (KO) issued bonds for one billion dollars. The bonds have a par value of $1,000,
QUESTION 4
On June 1st, 2020, Coca Cola (KO) issued bonds for one billion dollars. The bonds have a par value of $1,000, coupon rate of 2.75% payable semiannually, and 40 years maturity (maturity date: 6/1/2060).
What is the HPR (holding period return) for an investor who purchased these bonds at launch (6/1/20) for $970.30 and sold them three years later (6/1/23) for $681.83?
| -29.73% over the three years. | ||
| -24.35% over the three years. | ||
| -19.74% over the three years. | ||
| -9.90% over the three years. |
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