Bond Returns

Last year, Joan purchased a $1,000 face value corporate bond with an 9% annual coupon rate and a 20-year maturity. At the time of the purchase, it had an expected yield to maturity of 11.03%. If Joan sold the bond today for $971.38, what rate of return would she have earned for the past year?

 

Looking for a Similar Assignment? Hire our Top Techical Tutors while you enjoy your free time! All papers are written from scratch and are 100% Original. Try us today! Active Discount Code FREE15