What is the new yield to maturity on the bond
Question: You buy an 8 percent coupon, 10-year maturity bond for $980. A year later, the bond price is $1,100.a. What is the new yield to maturity on the bond?
b. What is your rate of return over the year?
Now Priced at $20 (50% Discount)
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a. What is the new yield to maturity on the bond? b. What is your rate of return over the year?
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