Question

Ch. 7

(Bondholders expected rate of return) You own a bond that has a par value of $1,000 and matures in 16 years. It pays an annual coupon rate of 9 percent. The bond currently sells for $1,125. What is the bonds expected rate of return? The bonds expected rate of return is %. (Round to two decimal places)Round to two decimal places. Answer in PERCENTAGE FORM.

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Answer #1

COUPON RATE 9.00% NPER YEARS TO MATURITY 16 $90.00 (face value x coupon rate) $1,000.00 $1,125.00 PMT = FACE VALUE PRICE = PV

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Ch. 7 Round to two decimal places. Answer in PERCENTAGE FORM. (Bondholders' expected rate of return)...
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