Question
You bought a bond three years ago for $1,050. The bond is now selling for $1,010. It also paid $40 in interest every six months,
You bought a bond three years ago for $1,050. The bond is now selling for $1,010. It also paid $40 in interest every six months, which you reinvested in the bond. What is your realized rate of return earned on this bond.
| A. | 8.89% | |
| B. | 8.00% | |
| C. | 4.44% | |
| D. | 6.45% | |
| E. | 3.22% |
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Risk Management And Financial Institutions
Authors: John Hull
1st Edition
0132397900, 9780132397902
