Last year, William purchased a 7% fixed coupon $1,000 par callable bond with a maturity of...

 

Transcribed Image Text:

Last year, William purchased a 7% fixed coupon $1,000 par callable bond with a maturity of 8 years for $1,030 which provided him with a yield of 6.5%. The bond was just called at par. What is William's return on this investment? Last year, William purchased a 7% fixed coupon $1,000 par callable bond with a maturity of 8 years for $1,030 which provided him with a yield of 6.5%. The bond was just called at par. What is William's return on this investment?

Answer rating: 100% (QA)

To calculate Williams return on this investment we need to consider the coupon payments rece... View the full answer