Anna bought a bond with a par value of $10,000 and a coupon rate of 8% at

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Anna bought a bond with a par value of $10,000 and a coupon rate of 8% at par. After a year, she was able to sell her bond for $11,000. Calculate the rate of return on Anna's investment. What is the current yield and capital gain on her investment?

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Financial Markets And Institutions

ISBN: 9781292215006

9th Global Edition

Authors: Stanley Eakins Frederic Mishkin

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Question Posted: Oct 16, 2023 07:24 AM

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Anna bought a bond with a par value of $10,000 and a coupon rate of 8% at par. After a year, she was able to sell her bond for $11,000. Calculate the rate of return on Annas investment. What is the...
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Anna bought a bond with a par value of $10,000 and a coupon rate of 8% at

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To calculate the rate of return on Annas investment we can use the following formula Rate of return ...View the full answer

Financial Markets And Institutions

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