Question
Suppose you have a 20 year treasury bond with a 6% annual coupon ten years ago at par. Today the bond's yield to maturity has
Suppose you have a 20 year treasury bond with a 6% annual coupon ten years ago at par. Today the bond's yield to maturity has risen to 8% (EAR). if you hold this bond to maturity, the internal rate of return you will earn on your investment will be closest to:
A - 5.0
B - 5.6%
C - 6.0%
D - 8.0%
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
11th edition
134141083, 978-0134141084
