What is the total return to an investor who purchases a bond for $1000 and sells the

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What is the total return to an investor who purchases a bond for $1000 and sells the bond for $1025 next year. Assume the bond has an annual coupon rate of 4% that is paid in two equal payments.

Record your answer as a decimal to four places after the decimal, so if your answer is 4.212111%, record your answer as 0.0421.

A 9-year zero coupon bond has a yield to maturity of 1.3 percent, and a par value of $1,000. What is the price of the bond?

Related Book For answer-question

Principles of Corporate Finance

ISBN: 978-0077404895

10th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen

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Posted Date: May 31, 2023 03:17 AM

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What is the total return to an investor who purchases a bond for $1000 and sells the

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Capital Gain or Loss Capital gainloss Selling price Purchase price Capital gainloss 1025 ... View the full answer

Principles of Corporate Finance

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