Question
You purchase a 2% coupon bond which has a 12% YTM. You hold the bond for 4 years and sell it at 7% YTM. You
You purchase a 2% coupon bond which has a 12% YTM. You hold the bond for 4 years and sell it at 7% YTM. You reinvest the coupons (which are paid annually) at 2%. The bond is 20 years. What is your holding period return?
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Lessons In Corporate Finance
Authors: Paul Asquith, Lawrence A. Weiss
2nd Edition
1119537835, 978-1119537830
