You purchase a 8 - year bond at $ 97 per $ 100 par value that...
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You purchase a 8 - year bond at $ 97 per $ 100 par value that pays a 7.3 % coupon per annum. Further assume that bond pays coupon semi - annually, and coupons can be reinvested at 3.5 % semi - annually for first 6 years. The yield to maturity of a 2-years comparable bond after 6 years is 5%. If you hold the bond for 6 years, what will be your total return? Please write the answer in four decimal places and NOT PERcentage. You purchase a 8 - year bond at $ 97 per $ 100 par value that pays a 7.3 % coupon per annum. Further assume that bond pays coupon semi - annually, and coupons can be reinvested at 3.5 % semi - annually for first 6 years. The yield to maturity of a 2-years comparable bond after 6 years is 5%. If you hold the bond for 6 years, what will be your total return? Please write the answer in four decimal places and NOT PERcentage.
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Related Book For
Valuation Measuring and managing the values of companies
ISBN: ?978-0470424704
5th edition
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
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