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Homework answers / question archive / You purchase a corporate bond with a face value = $2000, coupon rate = 7%, years to maturity = 30, when the discount rate = 5%
You purchase a corporate bond with a face value = $2000, coupon rate = 7%, years to maturity = 30, when the discount rate = 5%. After 1 year(s) and after receiving the last period's coupon, you sell the bond when interest rates are 6%. What is your holding period return for this bond? Assume the bond pays semiannual coupons at the end of each period.
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