A man buys a corporate bond from a bond brokerage house for $925. The bond has a
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A man buys a corporate bond from a bond brokerage house for $925. The bond has a face value of $1000 and pays 4% of its face value each year. If the bond will be paid off at the end of 10 years, what rate of return will the man receive?
Face ValueFace value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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PW of Cost PW of Benefits 925 40 PA i 10 100...View the full answer
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