Question
You purchase a 5-year corporate bond. The coupon rate of the bond is 8%, paid semi-annually, and its par value is $1,000. The YTM is
You purchase a 5-year corporate bond. The coupon rate of the bond is 8%, paid semi-annually, and its par value is $1,000. The YTM is 6%. If you sell the bond one year later when the interest rate declines to 5%, what is your holding period return?
| A. | 2.1% | |
| B. | 9.4% | |
| C. | 6.5% | |
| D. | 1.7% |
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Corporate Governance And Financial Management Computational Optimization Modelling And Accounting Perspectives
Authors: S Nuryanah, S Islam
1st Edition
1349493228, 9781349493227
