Question
Suppose a three-year, $1000 bond has a 6% coupon rate and semiannual coupons. The yield-to-maturity (YTM) is 8% today. The bonds price immediately after its
Suppose a three-year, $1000 bond has a 6% coupon rate and semiannual coupons. The yield-to-maturity (YTM) is 8% today.
The bonds price immediately after its 1st semiannual coupon payment supposing the YTM stays at 8% in six months is $955.48
What is the holding-period return for the 1stsix months?
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Personal Finance Building Your Future
Authors: Robert B. Walker, Kristy P. Walker
1st edition
9780077861728, 978-0073530659
