(Bondholders' expected rate of return) You own a bond that has a par value of $1000...
(Bondholders' expected rate of return) You own a bond that has a par value of $1000 and matures in 18 years. It pays an annual coupon rate of 8 percent. The bond currently sells for $725. What is the bond's expected rate of return? The bond's expected rate of return is nothing
Homework Answers
use financial calculator function as below
FV=1000 is the face value or par value of the bond
PV=-725 is the present value or current price of the bond
N=18
PMT=1000*8%=80
Click CPT
Click I/Y=11.73% is The bond's expected rate of return
the above is answer..
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(Bondholders' expected rate of return) You own a bond that
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Ch. 7
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