An investor invested a one-year maturity zero coupon rate bond 90 days ago by paying 965 USD from primary market. The bond is traded in the market with % 3 interest rate today. Ifthe bond's face value is $1,000 and yearis accepted as a 360 days. If the investor sells the bond today, what will behis/her return from this investment.?
An investor invested a one-year maturity zero coupon rate bond 90 days ago by paying 965 USD from primary market. The bond is traded in the market with % 3 interest rate today. Ifthe bond's face value is $1,000 and yearis accepted as a 360 days. If the investor sells the bond today, what will behis/her return from this investment.?
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 13P
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An investor invested a one-year maturity zero coupon rate bond 90 days ago by paying 965 USD from primary market. The bond is traded in the market with % 3 interest rate today. Ifthe bond's face value is $1,000 and yearis accepted as a 360 days. If the investor sells the bond today, what will behis/her
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