Question: Could you write that I can see ( no cursive please, you can type the answer simply :) Problem 3-10 Bond returns A government bond
Could you write that I can see ( no cursive please, you can type the answer simply :)
Problem 3-10 Bond returns A government bond matures in 7 years, makes annual coupon payments of 5.6% and offers a yield of 3.6% annually compounded. Assume face value is $1,000. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) a. Suppose that one year later the bond still yields 3.6%. What return has the bondholder earned over the 12-month period? Rate of return % b. Now suppose that the bond yields 2.6% at the end of the year. What return did the bondholder earn in this case? Rate of return %
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