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You bought a 15 year maturity bond with a coupon rate of 10% paid semiannually . you will sell this bond two years from now.
You bought a 15 year maturity bond with a coupon rate of 10% paid semiannually . you will sell this bond two years from now. The reinvestment rates are 10% in year 1 and 8% in year 2 and will remain constant for the remainder of its dursriom . you sell this bond after 2 years at a price closer to A)at discount B)1170 C)1159 D)Above $1170 E)none Refer to question above and the annualized rate of return a) negative B)between 10 to 15% C)less than 10% D)Nome of the above
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