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You buy a(n) 7.8% coupon, 7-year maturity bond for $982. A year later, the bond price is $1,152. Assume coupons are paid once a year and the face value is $1,000.

part a) What is the new yield to maturity on the bond (one year from now)?

part b)What is your bond's rate of return over the year?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91591020

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