You buy an 9-year $1,000 par value bond today that has a 6.50% yield and a 6.50%
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You buy an 9-year $1,000 par value bond today that has a 6.50% yield and a 6.50% annual payment coupon. In 1 year promised yields have risen to 7.50%. What would be the EAR be? And how do you calculate it? How does it compare to Holding period of 1 year? |
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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