Question
You buy a bond today for $9,020. The face value of the bond is $10,000, coupon rate is 3.75%, interest is paid semi-annually, and maturity
You buy a bond today for $9,020. The face value of the bond is $10,000, coupon rate is 3.75%, interest is paid semi-annually, and maturity is in 10 years. After holding the bond for 3 years you decide to sell it for $10,200. What is your holding period yield (or total return or realized yield) on this bond?
***show formula for answer**
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The Oxford Handbook Of Pricing Management
Authors: Ozalp Ozer, Robert Phillips
1st Edition
0199543178, 978-0199543175
