At the beginning of the year, you bought a $1,00o par value corporate bond with...
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Finance
At the beginning of the year, you bought a $1,00o par value corporate bond with an annual coupon rate of 12 percent and a maturity date 16 years. When you bought the bond, it had an expected yield to maturity of 13 percent. Today the bond sells for $1,070.
a. What did you pay for the bond?
b. If you sold the bond at the end of the year, what would be your one-period return on the investment? Assume that you did not receive any interest payment during the holding period.
a. The price your paid for the bond is $____
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