What will be the rate of return on the bond
Question:
A two-year maturity bond with a face value of $1,000 makes annual coupon payments of $80 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year is (a) 6%, (b) 8%, (c) 10%.
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What will be the rate of return on the bond if its yield to maturity at the end of the year is (a) 6% (b) 8% (c) 10%.
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