You buy a bond for $980 that has a coupon rate of 8% and a 10-year maturity.
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Question:
You buy a bond for $980 that has a coupon rate of 8% and a 10-year maturity. A year later, the bond price is $1,200. (Assume a face value of $1,000 and annual coupon payments.
What is the new yield to maturity on the bond?
What is your rate of return over the year?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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