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If you paid $1,195 for a 10-year bond that pays 7% coupon interest annually, what is the expected rate maturity)? Please provide the following: PV= rate npers PMT= FV=

If you paid $1,195 for a 10-year bond that pays 7% coupon interest annually, what is the expected rate maturity)? Please provide the following: PV= rate npers PMT= FV=

Essentials Of Investments
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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**Question 3** If you paid $1,195 for a 10-year bond that pays 7% coupon interest annually, what is the expected rate of return (yield to maturity)? Please provide the following: - **PV =** - **rate =** - **nper =** - **PMT =** - **FV =**
Transcribed Image Text:**Question 3** If you paid $1,195 for a 10-year bond that pays 7% coupon interest annually, what is the expected rate of return (yield to maturity)? Please provide the following: - **PV =** - **rate =** - **nper =** - **PMT =** - **FV =**
Expert Solution
Step 1: Define=yield to maturity

Yield to maturity is the rate of return realized on bond when bond is held till maturity and all cash flow are received.

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