Question
Richard Miller bought 10-year bonds issued by Harvest Foods five years ago for $ 931.55. The bonds make semiannual coupon payments at a rate of
Richard Miller bought 10-year bonds issued by Harvest Foods five years ago for $ 931.55. The bonds make semiannual coupon payments at a rate of 8.3 percent. If the current price of the bonds is $ 1,049.77, what is the yield that Richard would earn by selling the bonds today? (Round answer to 2 decimal places, e.g. 15.25%.)
| What is the effective annual yield? |
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
