Suppose you bought a 1000 par bond 7 annual coupon payment


Suppose you bought a $1,000 par bond, 7% annual coupon payment with 5 years maturity when the market interest rate is 8%. After 1 year and immediately after you received the coupon payment you decided to sell the bond when the market interest rate is 9%. Compute the annual return you realized from this bond.

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Accounting Basics: Suppose you bought a 1000 par bond 7 annual coupon payment
Reference No:- TGS01652271

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