Suppose that you just bought a four-year $1,000 coupon bond with a coupon rate of 5.7% when the market interest rate is 5.7%. You sell the bond one year later after the market interest rate falls to 3.7%. The rate of return earned on the bond during the year was %. (Round your response to two decimal places.)
Suppose that you just bought a four-year $1,000 coupon bond with a coupon rate of 5.7% when the market interest rate is 5.7%. You sell the bond one year later after the market interest rate falls to 3.7%. The rate of return earned on the bond during the year was %. (Round your response to two decimal places.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 17P
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