Question
Suppose you just bought a 11-year semiannual bond for a quoted price of 92.97. The bond has a face value of $1,000 and a coupon
Suppose you just bought a 11-year semiannual bond for a quoted price of 92.97. The bond has a face value of $1,000 and a coupon rate of 14.92%. What annual interest rate can you expect to earn if you hold the bond until maturity?
The answer given is 16.32, I'm just not sure how to get there.
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The New Managed Account Solutions Handbook
Authors: Stephen D. Gresham, Arlen S. Oransky
1st Edition
0470222786, 978-0470222782
