EBK INVESTMENTS
EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 16, Problem 20PS

A

Summary Introduction

To calculate: The value of expected return rate of 30 year bond over the 5 year period.

Introduction: The return rate of the portfolio is defined in terms of the expected gain or loss after the maturity period of portfolio. The positive return means gain in the investment. Negative return shows the loss of the portfolio.

B

Summary Introduction

To calculate: The annual expected return rate of 20 year bond.

Introduction: The return rate is a measurement of the net gain or net loss over a period of time of the portfolio. Return value is a comparison between total incomes with the investment in the portfolio.

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