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Essentials of Investments- Bodie, Kane and Marcus.

1. A bond that sells for $ 957 at three years make annual payments of coupons at 8%. The interest rate for the next three years is estimated at: 8%, 10% and 12%, respectively. Calculate:

a) The YIELD TO MATURITY of the bond

b) The effective return at the end of the period (remember that it is compound interest)

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92844375

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