Question: Question 9 & 10 9. A 10-year, 7% coupon bond with a face value of $1,000 is currently selling for $871.65. Compute your rate of
Question 9 & 10
9. A 10-year, 7% coupon bond with a face value of $1,000 is currently selling for $871.65. Compute your rate of return if you sell the bond next year for $880.10. 10. You have paid $980.30 for an 8% coupon bond with a face value of $1,000 that matures in five years. You plan on holding the bond for one year. If you want to earn a 9% rate of return on this investment, what price must you sell the bond for? Is this realistic
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