Question
You buy a bond and hold it for one year. According to the information below... What is your holding period return? (Keep in mind
You buy a bond and hold it for one year. According to the information below... What is your holding period return? (Keep in mind you received coupon payments over the course of the year and that you get one year closer to maturity after the year passes by) Face Value: $1,000 YTM1 (Yield of comparable bonds) at date of purchase: 9% YTM2 (Yield of comparable bonds) at date of sale, end of the year: 4% Coupon: 10% Maturity: 10 years
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Money Banking and Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
4th edition
007802174X, 978-0078021749
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