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Suppose that today you buy a bond with a coupon rate of 5.5% for $865. The bond pays interests annually and has 21 years to
- Suppose that today you buy a bond with a coupon rate of 5.5% for $865. The bond pays interests annually and has 21 years to maturity What rate of return do you expect to earn on your investments?
- Two years from now, the YTM on your bond has declined by 1%, and you decide to sell. What price will your bond sell for? What is the return on your investment? Why is the return different from the YTM when you first bought the bond?
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Capital Failure Rebuilding Trust In Financial Services
Authors: Nicholas Morris , David Vines
1st Edition
0198712227,019102077X
