BOND RETURNS Last year Janet purchased a $1,000 face value corporate bond with an 7% annual coupon rate and a 15-year maturity. At the time of the purchase, it had an expected yield to maturity of 10.5%. If Janet sold the bond today for $1,161.41, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.
BOND RETURNS Last year Janet purchased a $1,000 face value corporate bond with an 7% annual coupon rate and a 15-year maturity. At the time of the purchase, it had an expected yield to maturity of 10.5%. If Janet sold the bond today for $1,161.41, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.
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:BOND RETURNS
Last year Janet purchased a $1,000 face value corporate bond with an 7% annual coupon rate and a 15-year maturity. At the time of the purchase, it had an expected yield
to maturity of 10.5%. If Janet sold the bond today for $1,161.41, what rate of return would she have earned for the past year? Do not round intermediate calculations.
Round your answer to two decimal places.
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