Question
What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one
What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19?Assume that bond pays annual coupon payment.
Question 38 options:
5.00%
5.33%
6.46%
7.00%
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
14th edition
978-1305887725, 1305887727, 1305636619, 978-1305636613
