A mortgage bond issued by Automation Engineering is for sale for $8,200. The bond has a face value of $10,000 with a coupon rate of 11% per year, payable quarterly. What rate of return will be realized if the purchaser holds the bond to maturity 6 years from now? The rate of return will be % per year

Answer rating: 100% (QA)

Let the rate of return be i so that NPV is 0 8200 1... View the full answer