Question: A 6 year bond issued today by Doodle, Inc. has a coupon rate of 13%, a required return of 3% and a face value of
A 6 year bond issued today by Doodle, Inc. has a coupon rate of 13%, a required return of 3% and a face value of $1000. The bond will be sold 2 years from now when interest rates will be 4%. What is the actual rate of return (or holding period return) over this 2 year period? Round to the nearest percent.
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