Question
You purchase a 20-year, $1,000 par value 6% coupon bond with annual payments with a yield to maturity of 8%. 1 year later after receiving
You purchase a 20-year, $1,000 par value 6% coupon bond with annual payments with a yield to maturity of 8%. 1 year later after receiving a coupon payment, the yield to maturity has decreased to 7% and you sell the bond. What is your total rate of return on the investment over the year?
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Introduction To Financial Models For Management And Planning
Authors: James R Morris, John P Daley
2nd Edition
1498765041, 9781498765046
