Question: A firm issues 2 0 - year bonds with a coupon rate of 5 % , paid annually. You buy the bond at $ 9

A firm issues 20-year bonds with a coupon rate of 5%, paid annually. You buy the bond at
$900 and sell the bond after one year at $1,050. What is the actual rate of return of your bond
investment?
A)16.7%
B)19.4%
C)19.5%
D)22%
A firm issues 20-year bonds with a coupon rate of 5%,

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