Purchased a bond that offered an ytm of 10 the bond had 5, Ask an Expert

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Purchased a bond that offered an YTM of 10%. The bond had 5 years to maturity and the company paid coupons and the principal as scheduled during the 5 years. The saved coupons were put into a saving account that paid 5% annual rate. Although interest rates had dropped considerably in the 5 years, they was still able to earn 10% average return on the bond investment. How would you respond to the investment?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92818581

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