Bond Price: $2000 Yearly Coupon Payment: 8% Years to Maturity: 10 Years Bond is sold at the end of 3rd year. Inflation in 3rd Year: 2% Forecasted required return: 4% What is the real return of the bond over the 3 year?
Bond Price: $2000 Yearly Coupon Payment: 8% Years to Maturity: 10 Years Bond is sold at the end of 3rd year. Inflation in 3rd Year: 2% Forecasted required return: 4% What is the real return of the bond over the 3 year?
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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Yearly Coupon Payment: 8%
Years to Maturity: 10 Years
Bond is sold at the end of 3rd year.
Inflation in 3rd Year: 2%
What is the real return of the bond over the 3 year?
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