Rudy purchased a 7.5% coupon rate bond one year ago for its face value of $100....
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Rudy purchased a 7.5% coupon rate bond one year ago for its face value of $100. He bought the bond just after the coupon date. Yesterday the bond paid its annual coupon. The bond currently has 15 years until maturity and has a yield to maturity of 9.44%. If Rudy sells the bond today, then what is his return for the last year? Rudy purchased a 7.5% coupon rate bond one year ago for its face value of $100. He bought the bond just after the coupon date. Yesterday the bond paid its annual coupon. The bond currently has 15 years until maturity and has a yield to maturity of 9.44%. If Rudy sells the bond today, then what is his return for the last year?
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Answer rating: 100% (QA)
Bond Purchase cost at par 1000 Annual interest received 7... View the full answer
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Posted Date:
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