An investor buys a 10 year 5 coupon 100 par value bond for


An investor buys a 10 year, 5% coupon, $100 par value bond, for par. What is her YTM? Two years after she buys the bond the investor hopes to sell it and make an annual return on her investment of 10%, what must be the price she sells it for in order to get this return? What had to happen to the market rate of interest over the two years in order for her to make the 10% return?

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Financial Management: An investor buys a 10 year 5 coupon 100 par value bond for
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