Princetown Corp issues 6% coupon bonds for par value today. These bonds make semi-annual coupon payments and mature in 12 years. You buy one of these bonds for exactly $1,000. You hold the bond for 6 months, collect the coupon payment, and then sell the bond immediately therafter. If the bond's yield-to-maturity is 9.2% when you sell it, what is your percentage return (not annualized) over this 6-month holding period? Enter your answer as a decimal and show 4 decimal places.
Princetown Corp issues 6% coupon bonds for par value today. These bonds make semi-annual coupon payments and mature in 12 years. You buy one of these bonds for exactly $1,000. You hold the bond for 6 months, collect the coupon payment, and then sell the bond immediately therafter. If the bond's yield-to-maturity is 9.2% when you sell it, what is your percentage return (not annualized) over this 6-month holding period? Enter your answer as a decimal and show 4 decimal places.
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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Princetown Corp issues 6% coupon
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