The one-year return on a 10-year coupon bond with face value of $10,000 and a 4% coupon rate that initially sells for par is nogu 1. All of the above bns Des 2. b)-3% if interest rates immediately rise from 4% to 5% after the bond is sold 3. c) 12% if interest rates immediately fall from 4% to 3% after the bond is sold 4. d) 4% if interest rates do not change 5. e) None of the above
The one-year return on a 10-year coupon bond with face value of $10,000 and a 4% coupon rate that initially sells for par is nogu 1. All of the above bns Des 2. b)-3% if interest rates immediately rise from 4% to 5% after the bond is sold 3. c) 12% if interest rates immediately fall from 4% to 3% after the bond is sold 4. d) 4% if interest rates do not change 5. e) None of the above
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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Transcribed Image Text:The one-year return on a 10-year coupon bond with face value of $10,000 and a 4%
coupon rate that initially sells for par is
SHS
1.
All of the above
ans 02.0-0001-4 yd ne
2. b)-3% if interest rates immediately rise from 4% to 5% after the bond is sold
3. c) 12% if interest rates immediately fall from 4% to 3% after the bond is sold
4. d) 4% if interest rates do not change
5. e) None of the above
woul
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