A savvy investor paid $7000 for a 20 year $10.000 mortgage bond that had a bond iterest ate of per yea payte quly Three years after he purchased the bond, market interest rates went down, so the bond increased in va bond for $1.500 three years after he bought it, what rate of return did the investor make per qarter and per yew nom invest sokd the The rate of retun per quarter is The rate of return per year is

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
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A savvy investor paid $7,000 for a 20-year $10,000 mortgage bond that had a bond interest rate of per year payate quartely
Three years after he purchased the bond, market Interest rates went down so the bond increased in value the investo scd the
bond for $11,500 three years after he bought it, what rate of return did the investor make per quartet and per year nomin
The rate of return per quarter is
0154 05
The rate of return per year is
Transcribed Image Text:6. A savvy investor paid $7,000 for a 20-year $10,000 mortgage bond that had a bond interest rate of per year payate quartely Three years after he purchased the bond, market Interest rates went down so the bond increased in value the investo scd the bond for $11,500 three years after he bought it, what rate of return did the investor make per quartet and per year nomin The rate of return per quarter is 0154 05 The rate of return per year is
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