Question
Suppose that an investor is considering the purchase of a U.S. bond due to mature in 30 years, carrying an 8 percent coupon rate. This
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Suppose that an investor is considering the purchase of a U.S. bond due to mature in 30 years, carrying an 8 percent coupon rate. This security is available for purchase at a current market price of $975. The bond has a par value of $1000. If this investor redeems the bond 16 years later at a price of $990, what is his holding period yield, h? Please show work and formula , don't use excel
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Personal Finance
Authors: Vickie L Bajtelsmit
2nd Edition
111959247X, 9781119592471
