Assume that an investor pays $750 for a long-term bond that carries a coupon of 6%....
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Assume that an investor pays $750 for a long-term bond that carries a coupon of 6%. In three years, he hopes to sell the issue for $875. If his expectations come true, what yield will this investor realize? (Use annual compounding.) What would the holding period return be if he were able to sell the bond (at $875) after only nine months? The yield will be % (Round to two decimal places.) Assume that an investor pays $750 for a long-term bond that carries a coupon of 6%. In three years, he hopes to sell the issue for $875. If his expectations come true, what yield will this investor realize? (Use annual compounding.) What would the holding period return be if he were able to sell the bond (at $875) after only nine months? The yield will be % (Round to two decimal places.)
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