Question
Suppose the discount rate is 6%. You bought a 30-year, 12% coupon bond with 6 years year after it is issued. After holding it for
Suppose the discount rate is 6%. You bought a 30-year, 12% coupon bond with 6 years year after it is issued. After holding it for 2 years, the discount rate changed to 10% and sold the bond right after the discount rate change. What is your HPR (Assume par value is $1000 and semiannual coupons)?
| -18.50% | ||
| 69.81% | ||
| -26.24% | ||
| -19.42% | ||
| -33.07% |
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Corporate Finance Theory And Practice
Authors: Aswath Damodaran
2nd Edition
0471283320, 9780471283324
