A year ago, you bought a bond with a coupon rate of 4.6%, just after it...
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A year ago, you bought a bond with a coupon rate of 4.6%, just after it paid its semiannual coupon. The bond had 18 years to maturity, a face value of $1,000 and a yield to maturity of 3.2%. Shortly after buying the bond, yields changed to 4.5%. What is your realized yield if you sell the bond now, one year after buying it? 6 A year ago, you bought a bond with a coupon rate of 4.6%, just after it paid its semiannual coupon. The bond had 18 years to maturity, a face value of $1,000 and a yield to maturity of 3.2%. Shortly after buying the bond, yields changed to 4.5%. What is your realized yield if you sell the bond now, one year after buying it? 6
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Answer rating: 100% (QA)
Since the bond has a coupon rate of 46 it pays a coupon of 46 1000 x 46 every year or 23 462 every s... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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