Question
You bought a 6-year bond issued by Seven Network Ltd 4 years ago. At that time, you paid $974.33 for the bond. The bond pays
You bought a 6-year bond issued by Seven Network Ltd 4 years ago. At that time, you paid $974.33 for the bond. The bond pays a coupon rate of 7.375 per cent, and interest is paid semi-annually. Currently, the bond is priced at $1023.56. What yield can you expect to earn on this bond if you sell it today? Assume the bond has a face value of $1000.
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
