9. The face value of a bond is $3000.00. The firm offering the bond pays 1% of the sales price to the selling agency and will pay $300.00 to the buyer every year. The bond matures in ten years and the firm pays $3000.00 to the buyer at the end of the tenth year. What is the effective rate of return on this bond to the firm offering it? a) 11.10% b) 12% c) 10.18% d) 10.56%
9. The face value of a bond is $3000.00. The firm offering the bond pays 1% of the sales price to the selling agency and will pay $300.00 to the buyer every year. The bond matures in ten years and the firm pays $3000.00 to the buyer at the end of the tenth year. What is the effective rate of return on this bond to the firm offering it? a) 11.10% b) 12% c) 10.18% d) 10.56%
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 9P
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