Annual total rate of return on holding bond, Finance Basics

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Annual total rate of return on holding bond

You purchased a semi-annual interest coupon bond one year ago that had 8 years remaining to maturity at that time. The coupon interest rate was 5% and the par value was $1,000. At the time you purchased the bond, the yield to maturity was 8%. If you sold the bond after receiving the first interest payment and the yield to maturity change to be 7%, what is your annual total rate of return on holding the bond for that year?

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Finance Basics: Annual total rate of return on holding bond

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Finance Basics: Annual total rate of return on holding bond

Reference No:- TGS045628

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Compute the maximum depreciation expense

Q : Explain market for cider has the demand curve

Q : What is the net impact on werner''s net income

Q : Calculate simmons maximum depreciation

Q : Annual total rate of return on holding bond

Q : How economy regains long-run equilibrium from a recession

Q : Pre-tax profits from sales of course packs

Q : How much depreciation was allowed for 2011

Q : Bond interest and income tax

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Annual total rate of return on holding bond

Reference No:- TGS045628

Recent Questions Asked Finance Basics

Q : Compute the maximum depreciation expense

Q : Explain market for cider has the demand curve

Q : What is the net impact on werner''s net income

Q : Calculate simmons maximum depreciation

Q : Annual total rate of return on holding bond

Q : How economy regains long-run equilibrium from a recession

Q : Pre-tax profits from sales of course packs

Q : How much depreciation was allowed for 2011

Q : Bond interest and income tax

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