Question
You buy a 2-year bond with a(n) 6% coupon paid annually and $1,000 face value. You pay $1,000. After one year, you receive the annual
You buy a 2-year bond with a(n) 6% coupon paid annually and $1,000 face value. You pay $1,000. After one year, you receive the annual coupon, and you sell the bond at $982. What was the yield to maturity for the buyer of your bond? (i.e. the person who bought from you after one year.)
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
