Question
Suppose you buy a 9.4 percent coupon bond today for $1,120. The bond has 5 years to maturity. a. What rate of return do you
| Suppose you buy a 9.4 percent coupon bond today for $1,120. The bond has 5 years to maturity. |
| a. | What rate of return do you expect to earn on your investment? |
| b. | Two years from now, the YTM on your bond has increased by 2 percent, and you decide to sell. What price will your bond sell for? |
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M Finance
Authors: Marcia Cornett, Troy Adair, John Nofsinger
3rd Edition
0077861779, 978-0077861773
