A mortgage bond issued by Automation Engineering is for sale for $8200. The bond has a face value of $10,000 with a coupon rate of 8% per year, payable annually. What rate of return will be realized if the purchaser holds the bond to maturity 5 years from now?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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A mortgage bond issued by Automation Engineering
is for sale for $8200. The bond has a face value
of $10,000 with a coupon rate of 8% per year, payable
annually. What rate of return will be realized
if the purchaser holds the bond to maturity 5 years
from now?

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