Question: A recently issued industrial bond with a face value of 10 000
A recently issued industrial bond with a face value of $10,000 has a coupon rate of 8% per year, payable annually. The bond matures 20 years from now. Jeremy is interested in buying one bond. If he pays $10,000 for the bond and plans to hold it to maturity, what rate of return per year will he realize?
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