ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 7, Problem 46P
To determine

The calculation of rate of return.

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A man buys a corporate bond from a bond brokerage house for $875. The bond has a face value of $1000 and a 4% coupon rate paid semiannually. If the bond will be paid off at the end of 12 years, what rate of return will the man receive?
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ENGR.ECONOMIC ANALYSIS

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