Question
Use given below information to attempt next four parts: Investor bought 20-year bond with a coupon rate of 10% at face value of Rs.1000. After
Use given below information to attempt next four parts:
Investor bought 20-year bond with a coupon rate of 10% at face value of Rs.1000. After three
years YTM is 9% in market. Investor decided to sell bond after holding it for three years.
a)
What should be YTM in market when investor bought bond?
b)
Mow much interest investor received during his holding period?
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Calculus And Its Applications
Authors: Larry Goldstein, David Lay, David Schneider, Nakhle Asmar
14th Edition
0134437772, 9780134437774
