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Problem: Last year, Joan purchased a $1,000 face value corporate bond with a 7% annual coupon rate and a 25-year maturity. At the time of the purchase, it had an expected yield to maturity of 13.99%.

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Question: If Joan sold the bond today for $988.63, what rate of return would she have earned for the past year?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172771

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