You buy a bond issued by terlingua oil amp gas exploration


You buy a bond issued by Terlingua Oil & Gas Exploration Corp. The coupon rate is 10%, and coupons are paid semi-annually. Par of your bond is $10,000. The bond matures in 10 years. Your price today on the bond is $9,000. In six months, the YTM on the bond has risen by 1%. You collect the coupon payment and sell the bond. What is your effective annual rate of return?

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Financial Accounting: You buy a bond issued by terlingua oil amp gas exploration
Reference No:- TGS01699159

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