Question
You spend $1,363 for a bond with a $1,000 face value and a 6% coupon. After one year, though, you decide to sell it. Youre
You spend $1,363 for a bond with a $1,000 face value and a 6% coupon. After one year, though, you decide to sell it. Youre pleased to find that the value of the bond is now $1,461, so you sell for that price.
a. Calculate your one-year rate-of-return for the bond.
b. Calculate the bonds current yield
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Public Finance In Canada
Authors: Harvey Rosen, Beverly George Dahlby, Roger Smith, Jean-Francois Wen, Tracy Snoddon
3rd Canadian Edition
0070951659, 978-0070951655
