Question
You bought a $1,000, 20-year 12% annual coupon bond at issue. Immediately thereafter the YTM had changed to 10%. 1) Find the total interest at
You bought a $1,000, 20-year 12% annual coupon bond at issue. Immediately thereafter the YTM had changed to 10%.
1) Find the total interest at the end of year 5.
2) Find the interest-on-interest at the end of year 5.
3) Find the capital gain at the end of year 5.
4) Find the total income at the end of year 5.
5) Find the realized return at the end of year 5.
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Fundamentals of Engineering Economics
Authors: Chan S. Park
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132775425, 132775427, 978-0132775427
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