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You buy a 2-year bond with a(n) 8% coupon paid annually and $1,000 face value. You pay $960. After one year, you receive the annual coupon, and you sell the bond at $1100. In this case, your rate of return was %. Give your answer with TWO DECIMALS and no percentage sign. I.e. 10% should be written as 10.00 Your Answer: Answer

You buy a 2-year bond with a(n) 8% coupon paid annually and $1,000 face value. You pay $960. After one year, you receive the annual coupon, and you sell the bond at $1100. In this case, your rate of return was %. Give your answer with TWO DECIMALS and no percentage sign. I.e. 10% should be written as 10.00 Your Answer: Answer

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 3PROB
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Question 5 You buy a 2-year bond with a(n) 8% coupon paid annually and $1,000 face value. You pay $960. After one year, you receive the annual coupon, and you sell the bond at $1100. In this case, your rate of return was %. Give your answer with TWO DECIMALS and no percentage sign. I.e. 10% should be written as 10.00 Your Answer: Answer
Transcribed Image Text:Question 5 You buy a 2-year bond with a(n) 8% coupon paid annually and $1,000 face value. You pay $960. After one year, you receive the annual coupon, and you sell the bond at $1100. In this case, your rate of return was %. Give your answer with TWO DECIMALS and no percentage sign. I.e. 10% should be written as 10.00 Your Answer: Answer
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