Bonds issued by Glorious Vending Corporation have a coupon rate of 14.00 percent and a face value of $1,000, pay semi-annual coupons with one just paid and the next coupon due in 6 months, and mature in 15 years from today. Six months ago, the bonds were priced at $1,100. Today, the bond’s yield-to-maturity (YTM) is 13.00 percent. What was the rate of return for the bonds over the past 6 months (from 6 months ago until today)?
Bonds issued by Glorious Vending Corporation have a coupon rate of 14.00 percent and a face value of $1,000, pay semi-annual coupons with one just paid and the next coupon due in 6 months, and mature in 15 years from today. Six months ago, the bonds were priced at $1,100. Today, the bond’s yield-to-maturity (YTM) is 13.00 percent. What was the rate of return for the bonds over the past 6 months (from 6 months ago until today)?
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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Bonds issued by Glorious Vending Corporation have a coupon rate of 14.00 percent and a face value of $1,000, pay semi-annual coupons with one just paid and the next coupon due in 6 months, and mature in 15 years from today. Six months ago, the
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