Suppose you bought a 5 year coupon bond with par value $1,000 and coupon rate 3%...

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Suppose you bought a 5 year coupon bond with par value $1,000 and coupon rate 3% when the market yield was 3.5%. Two year later the market yield is 2% and you decide to sell the bond at a market price. What is the IRR on your investment? State your answer as a number rounded to 4 decimal points (e.g. if you get 7.89%, write 0.0789). Suppose you bought a 5 year coupon bond with par value $1,000 and coupon rate 3% when the market yield was 3.5%. Two year later the market yield is 2% and you decide to sell the bond at a market price. What is the IRR on your investment? State your answer as a number rounded to 4 decimal points (e.g. if you get 7.89%, write 0.0789).

Answer rating: 100% (QA)

Answer Value 1000 Number of years of coupon bondn 5 Market Yieldr 35 Coupo... View the full answer