You bought a $1,000-face 10%-coupon bond that had five years of remaining maturity one year ago. Rates were 5%. You sold the bond today and gained 6% on your entire bond investment. You sold the bond for $__. you bought the bond for? did interest rates rise or fall?
You bought a $1,000-face 10%-coupon bond that had five years of remaining maturity one year ago. Rates were 5%. You sold the bond today and gained 6% on your entire bond investment. You sold the bond for $__. you bought the bond for? did interest rates rise or fall?
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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You bought a $1,000-face 10%-coupon bond that had five years of remaining maturity one year ago. Rates were 5%. You sold the bond today and gained 6% on your entire bond investment. You sold the bond for $__. you bought the bond for? did interest rates rise or fall?
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