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Home > Business & Careers > Finance   »   Rate of Return

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Old Jan 30, 2006, 04:24 PM
LORENA7007
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Rate of Return
A 2 year maturity bond with face value of $1,000 that makes annual coupon payments of $80 and is selling at face value. What will be the rate of return on the bond if its yield to marurity at the end of the year is
a. 6%
b. 8%
c. 10%

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