Question
Suppose that an investor with a six-month investment horizon is considering purchasing a 10-year 4% coupon bond (face value=$1,000) selling at $944.66. The investor expects
Suppose that an investor with a six-month investment horizon is considering purchasing a 10-year 4% coupon bond (face value=$1,000) selling at $944.66. The investor expects that six months later the bond will be selling to offer a yield to maturity of 3.7%. What is the holding period return of this bond? Assume semiannual compounding.
| A. | 13.33% | |
| B. | 15.98% | |
| C. | 4.64% | |
| D. | 3.70% | |
| E. | 8.07% | |
| F. | 10.50% |
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Emerging Markets And The Global Economy A Handbook
Authors: Mohammed El Hedi Arouri, Sabri Boubaker, Duc Khuong Nguyen
1st Edition
