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View Full Version : A bond that pays coupons annually is issued with a coupon rate of 4%


kinich_249
May 10, 2011, 06:57 AM
Rate of Return. A bond that pays coupons annually is issued with a coupon rate of 4%, matu- rity of 30 years, and a yield to maturity of 7%. What rate of return will be earned by an investor who purchases the bond and holds it for 1 year if the bond's yield to maturity at the end of the year is 8%?

RickJ
May 10, 2011, 08:50 AM
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