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Rob decided to by a bond with a face value of 1000, coupon rate of 10% which is paid out annually, with a maturity of
Rob decided to by a bond with a face value of 1000, coupon rate of 10% which is paid out annually, with a maturity of 6 years. Rob invests the coupon for the first year at 8 percent for a year and sells the bond after receiving the 2nd years coupon is received. At time equals 2, the bonds yield to maturity is 9.5 percent. If Rob earned an annualized 14% return on this what was the purchase price fo this bond
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