Question
You buy a bond with a $1,000 par value today for a price of $845. The bond has 7 years to maturity and makes annual
You buy a bond with a $1,000 par value today for a price of $845. The bond has 7 years to maturity and makes annual coupon payments of $69 per year. You hold the bond to maturity, but you do not reinvest any of your coupons. What was your effective EAR over the holding period?
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk
11th Edition
0324422865, 978-0324422863
