1. An investor is interested in purchasing a 30-year U.S. government bond carrying an 8 percent...
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1. An investor is interested in purchasing a 30-year U.S. government bond carrying an 8 percent coupon rate. The bond's current market price is $925 for a $1000 par value instrument. Suppose the investor sells the bond at the end of 13 years for $970. What is the holding-period yield? Show your work below. (4 points) 1. An investor is interested in purchasing a 30-year U.S. government bond carrying an 8 percent coupon rate. The bond's current market price is $925 for a $1000 par value instrument. Suppose the investor sells the bond at the end of 13 years for $970. What is the holding-period yield? Show your work below. (4 points)
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Answer rating: 100% (QA)
Hence the holding period yield is 886 X Function Arguments RATE Nper 13 Pm... View the full answer
Related Book For
Introduction to Management Science A Modeling and Cases Studies Approach with Spreadsheets
ISBN: 978-0078024061
5th edition
Authors: Frederick S. Hillier, Mark S. Hillier
Posted Date:
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