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WHAT IS QUESTION D? A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8%
WHAT IS QUESTION D?
A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8% with interest paid annually. If the current market price is $750 What is the bond's yield to maturity? What is its current yield? What is its approximate capital gain yield of this bond over the next year? Suppose the interest rises to 10% right after the bond is purchased and stay at that level. What will be the holder's holding period yield if the bond is sold after 3 year
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