Question
Remember that $100,000 bond with the 9% coupon and that matures in 14 years (Q2)? You got it for only $87,100. You hold it for
Remember that $100,000 bond with the 9% coupon and that matures in 14 years (Q2)? You got it for only $87,100. You hold it for one year, and then sell it for $90,400.
a) What was your RORbond,1-yr?
b) What was the current yield on the bond?
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International Financial Management
Authors: Cheol Eun, Bruce Resnick
4th Edition
0072996862, 9780072996869
