A 1 2 year bond was issued 2 years ago with a coupon rate of 6 .

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Question:

12

year bond was issued

2

years ago with

a coupon rate of

6.8 % .

If you can buy this

bond today for $

1, 059.51,

what would be

the yield to maturity if you held the bond

for the remaining

10

years? What is the

effective annual return on this bond? can you solve inclduing the inputs to a financial calculator and show how to calculate the EAR from it

.

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

See More Books

Posted Date: May 18, 2024 09:14 PM

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A 1 2 year bond was issued 2 years ago with a coupon rate of 6 .

Question:

Expert Answer:

Foundations of Financial Management

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