The market price of a three-year 4% annual-coupon bond is 946.54. If the YTM rises to...

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The market price of a three-year 4% annual-coupon bond is 946.54. If the YTM rises to 7% and remains constant after you purchase the bond, what is the expected return if you hold the bond for two years? N=1, I/Y=7, PMT= 40, FV = 1000, CPT PV = 971.96 1/2 The market price of a three-year 4% annual-coupon bond is 946.54. If the YTM rises to 7% and remains constant after you purchase the bond, what is the expected return if you hold the bond for two years? N=1, I/Y=7, PMT= 40, FV = 1000, CPT PV = 971.96 1/2

Answer rating: 100% (QA)

The expected return on a bond is the difference between the market ... View the full answer