A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $116 and...

 

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A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $116 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year is: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. > Answer is complete but not entirely correct. Rate of Return 11.60 % 8.00 X % 6.18 X % a. 6% b. 11.6% c. 13.6% A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $116 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year is: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. > Answer is complete but not entirely correct. Rate of Return 11.60 % 8.00 X % 6.18 X % a. 6% b. 11.6% c. 13.6%

Answer rating: 100% (QA)

Rate of Return a 6 1102 b 116 1160 c 136 1181 Step by step procedure ... View the full answer