Homework answers / question archive / Kevin Phan bought 10-year bonds issued by Harvey Norman 5 years ago for $936

Kevin Phan bought 10-year bonds issued by Harvey Norman 5 years ago for $936

Finance

Share With

Kevin Phan bought 10-year bonds issued by Harvey Norman 5 years ago for $936.05. The bonds make semi-annual coupon payments at a rate of 8.4 per cent. If the current price of the bond is $1,048.77, what is the effective annual yield that Kevin would earn by selling the bonds today?