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Suppose you were considering buying a 20 year 4% bomb that is the current price of $950 but you expect to sell in five years
Suppose you were considering buying a 20 year 4% bomb that is the current price of $950 but you expect to sell in five years at a yield to maturity 5%...
Suppose you are considering buying a 20 year 4% bond that has a current price of $950, but you expect to sell it in five years at a yield to maturity of 5%. That is, you expect the yield to maturity on this bond to be 5% when you sell it in five years. What is your expected holding period yield? First, find out the expected selling price, which is $ (state as XXX.XX). Then, using the result you find out in the first step to calculate the holding period yield. State your answer as a percentage, X.XX\% Step by Step Solution
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