Question
You buy a $1,000 par value bond with a 7.5% coupon rate today for a price of $874.95. The bond has 7 years to maturity.
You buy a $1,000 par value bond with a 7.5% coupon rate today for a price of $874.95. The bond has 7 years to maturity. You sell the bond at the end of 3-years (Year 3). The bonds yield to maturity is 6% at the time of the sale. What is the IRR over the 3-year holding period for this investment?
| 12.46% | ||
| 13.57% | ||
| 14.43% | ||
| 15.78% |
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Fraud Examination And Prevention
Authors: W. Steve Albrecht, Chad O. Albrecht
1st Edition
053872689X, 978-0538726894
