If you buy a bond today at a 90% discount and sell it at a 20% premium in year 12, what is your holding period return per year? Assume that it is a 25-year semi-annual bond and pays coupon of 11%.

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter14: Investing In Stocks And Bonds
Section: Chapter Questions
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If you buy a bond today at a 90% discount and sell it at a 20% premium in year 12, what is your holding period return per year? Assume that it is a 25-year semi-annual bond and pays coupon of 11%. Answers with excel formulas will be appreciated

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