Question
Using a financial calculator- 1.An investor buys a bond with a $100 par value and a 5% coupon rate for $97. The bond pays interest
Using a financial calculator-
1.An investor buys a bond with a $100 par value and a 5% coupon rate for $97. The bond pays interest semiannually. Exactly one year later, just after receiving the second coupon payment, the investor sells the bond for $96. What was the investors rate of return over the year from owning the bond?
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th International Edition
0321552113, 9780321552112
