Actual Rate of Return

John Smith bought a 10 year coupon bond with a \$100 annual coupon and face value of \$1000 in 2009. The yield on the bond was 5.5%. Today he sold the bond in the market and this bond was sold to yield 3.95% to the new buyer. If Smith reinvested the coupons at a rate of 3.95%, what was the actual return to Smith over the 3 years?

 pita14 Posts: 1, Reputation: 1 New Member #2 Apr 19, 2012, 05:16 PM
Presidents do not use the internet to cheat on hw

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