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Last year Janet purchased a $1,000 face value corporate bond with a 12% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected yield to maturity of 12.24%. If Janet sold the bond today for $997.65, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places. 0%

Last year Janet purchased a $1,000 face value corporate bond with a 12% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected yield to maturity of 12.24%. If Janet sold the bond today for $997.65, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places. 0%

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
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Last year Janet purchased a $1,000 face value corporate bond with a 12% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected yield to maturity of 12.24%. If Janet sold the bond today for $997.65, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places. %
Transcribed Image Text:Last year Janet purchased a $1,000 face value corporate bond with a 12% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected yield to maturity of 12.24%. If Janet sold the bond today for $997.65, 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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