Question

An investor is considering the purchase of an 8%, 18-year corporate bond that’s being priced to yield 10%. She thinks that in a year, this bond will be priced in the market to yield 9%. Using annual compounding, find the price of the bond today and in 1 year. Next, find the holding period return on this investment, assuming that the investor’s expectations are borne out.


$1.99
Sales0
Views82
Comments0
  • CreatedApril 28, 2015
  • Files Included
Post your question
5000