Question
Rudy purchased a 7.5% coupon rate bond one year ago for its face value of $100. He bought the bond just after the coupon date.
Rudy purchased a 7.5% coupon rate bond one year ago for its face value of $100. He bought the bond just after the coupon date. Yesterday the bond paid its annual coupon. The bond currently has 15 years until maturity and has a yield to maturity of 9.44%. If Rudy sells the bond today, then what is his return for the last year?
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Multinational Financial Management
Authors: Shapiro A.C.
9th International Edition
8126536934, 9788126536931
