Find the holding-period return for a 1-year investment, Ask an Expert

Finance

A newly issued bond pays its coupons once annually. Its coupon rate is 5%, its maturity is 20 years, and its yield to maturity is 8%.

a. Find the holding-period return for a 1-year investment period if the bond is selling at a yield to maturity of 7% by the end of the year.

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Category:- Basic Finance
Reference No.:- M954153

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