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
Related questions
Question
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You buy a bond for $1,050 that pays $30 interest every 6 months. It will reach maturity in 9 years at which time it will return its
face value of $1000 plus the final $20 interest payment. What is the pre-tax annual rate of return on this bond? Estimate to 2
decimal places.
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Transcribed Image Text:3
E
D
C
You buy a bond for $1,050 that pays $30 interest every 6 months. It will reach maturity in 9 years at which time it will return its
face value of $1000 plus the final $20 interest payment. What is the pre-tax annual rate of return on this bond? Estimate to 2
decimal places.
#
F4
4
Upload Choose a File
R
F
$
V
F5
5%
T
G
F6
B
Q Search
F7 C
6 A
Y
H
7
F8
&
U
F9
8*
J
E
M
88
-
K
LG
F10
9
A
I
(
O
<
TAF
F11 -
L
0 )
F12 +
P
;
A
:
Prt Sc
ScrLk
=
[ {
/?
Ins
+
Del
Backspace
] }
PgUp
1
Home
NumLk
Enter
PgDn
End
Shift
I
7 Home
44
Pause
Break
8
10:33 AM
3/23/2023 2
★
5
1 End
9 PgUp
1
2
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