following information, compute the rate of return earned on the bond if the bond was sold on the same date next year as it was purchased this year. Coupon rate = 7% p.a. compounded annually Current Market Price = $871.65 Selling Price next year = $880.10 a. 17% b. 7% c. 9%

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A: Bonds are debt instruments issued by companies. The company that issues bond pays periodic coupons…

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A: Calculation of YTM:

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A: Solution:- Present value of bond means the current price of bond at which it is trading in the…

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