Lennar corporations one year bond has a yield equal to 52


Lennar corporations one year bond has a yield equal to 5.2%. Suppose that the maturity risk premium (mrp) for all bonds with maturities greater than one year is 0.15% per year. Based on this information, what should be the yield on Lennars five year bonds?

Two years ago, bob purchased a 20-year , $1,000 par value zero coupon bond for $311.80. If today (with 18 years to maturity) the bond is priced to yield 5.15% what is his annualized return if he sells the bond?

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Financial Management: Lennar corporations one year bond has a yield equal to 52
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