Question
Suppose that on January 1, 2013, you purchased a coupon bond with the following characteristics: Face Value: $1,000 Coupon Rate: 8 3/8 Current Yield: 7.5%
Suppose that on January 1, 2013, you purchased a coupon bond with the following characteristics:
Face Value: $1,000
Coupon Rate: 8 3/8
Current Yield: 7.5%
Maturity Date: 2015
If the bond is selling for $850 on January 1. 2014, then what was your rate of return on this bond during the holding period of calendar year 2013?
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Case Studies in Finance Managing for Corporate Value Creation
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
7th edition
007786171X, 77861711, 978-0077861711
