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What rate of return be earned by investor who purchases bond

A bond that pays coupons annually is issued with a coupon rate of 4.1%, maturity of 25 years, and a yield to maturity of 7.1%. What rate of return will be earned by an investor who purchases the bond and holds it for 1 year if the bond's yield to maturity at the end of the year is 8.1%?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What rate of return be earned by investor who purchases bond

Reference No:- TGS0559305

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What annual rate of return did have to earn

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Q : How much car to purchase if only finance for four years

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Q : What rate of return be earned by investor who purchases bond

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What rate of return be earned by investor who purchases bond

Reference No:- TGS0559305

Recent Questions Asked Finance Basics

Q : What annual rate of return did have to earn

Q : What is the amortization amount for each intangible

Q : How much car to purchase if only finance for four years

Q : Case study of soledad company

Q : What rate of return be earned by investor who purchases bond

Q : What is the interest rate to buy a car

Q : Expected total net income

Q : Estimated cash payback period for machine

Q : What is the year one operating cash flow

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