You purchase a high-yield, junk bond for $1,000 that pays $140 annually. After buying the bond, yields

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You purchase a high-yield, junk bond for $1,000 that pays $140 annually. After buying the bond, yields decline and you are able to reinvest the interest at only 9 percent. You reinvest all the interest payments.

How much will you have when the bond is retired after twelve years?

What was the annual return you earned on this investment?

Related Book For answer-question

Personal Finance Turning Money into Wealth

ISBN: 978-0134730363

8th edition

Authors: Arthur J. Keown

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Posted Date: Apr 10, 2023 12:49 AM

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You purchase a high-yield, junk bond for $1,000 that pays $140 annually. After buying the bond, yields

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To calculate the total amount you will have when the bond is retired after twelve years you need to ... View the full answer

Personal Finance Turning Money into Wealth

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