An investor is interested in purchasing a 30-year


An investor is interested in purchasing a 30-year government bond carrying a 10 percent coupon rate. The bond’s current market price is $950 for a $1000 par value instrument. What is the yield to maturity? Suppose the investor sells the bond at the end of 12 years for $980. What is the holding-period yield?

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Financial Management: An investor is interested in purchasing a 30-year
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