Question
suppose that an investor with a two year investment horizon is considering purchasing a seven year 9% coupon bond selling at par. The investor expects
suppose that an investor with a two year investment horizon is considering purchasing a seven year 9% coupon bond selling at par. The investor expects that he can reinvest the coupon payments at an annual interest rate 10% and that at the end of the investment horizon the bond will be selling to offer a yield to maturity of 11%. what is the total return for this bond?
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Handbook Of Research On Theory And Practice Of Financial Crimes
Authors: Abdul Rafay
1st Edition
1799855678, 978-1799855675
