A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $108 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: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Rate of Return a. 6% 10.80% b. 10.8% c. 12.8% 10.80% 10.80 %
A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $108 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: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Rate of Return a. 6% 10.80% b. 10.8% c. 12.8% 10.80% 10.80 %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $108 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:
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
Rate of Return
a. 6%
10.80%
b. 10.8%
c. 12.8%
10.80%
10.80 %
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