A bond matures in 10 years and has a face value of $8,000. The current...
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A bond matures in 10 years and has a face value of $8,000. The current purchase price of the bond is $ 6,000. The bond has annual coupon payments at an 10% interest on its face value each year. If the bond is purchased now, what is the yield (i) to the person who holds the bond for 10 years? (Hint: You can use trial by error method and start with =10%) (Hint 2: Yield should be between %10 and %20).
A bond matures in 10 years and has a face value of $8,000. The current purchase price of the bond is $ 6,000. The bond has annual coupon payments at an 10% interest on its face value each year. If the bond is purchased now, what is the yield (i) to the person who holds the bond for 10 years?
(Hint: You can use trial by error method and start with =10%)
(Hint 2: Yield should be between %10 and %20).
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