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What is the holding period yield for an investor who pays $1,295.47 for a bond with a $1,000 face value and a 5% coupon and
What is the holding period yield for an investor who pays $1,295.47 for a bond with a $1,000 face value and a 5% coupon and sells the bond three years later for $1,420.19?
a. 5.00%
b. 6.86%
c. 8.26%
d. 3.78%
a. 5.00%
b. 6.86%
c. 8.26%
d. 3.78%
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Step: 1
Solution Bond price ie PV 129547 Sale price 3 years later ie FV 142019 ...
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Investments An Introduction
Authors: Herbert B Mayo
9th Edition
324561385, 978-0324561388
