2. Consider a 10-year corporate bond with a par value of 1,000. The bond, which påys worth of coupons at the end of each year, was issued one year ago, and the price at issue was $731.6. The current effective annual market interest rate is 10%. Compute the realized return on the bond over the last year.

2. Consider a 10-year corporate bond with a par value of 1,000. The bond, which påys worth of coupons at the end of each year, was issued one year ago, and the price at issue was $731.6. The current effective annual market interest rate is 10%. Compute the realized return on the bond over the last year.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter6: Bonds (debt) - Characteristics And Valuation

Section: Chapter Questions

Problem 17PROB

See similar textbooks