Suppose you bought a bond with an annual coupon of 6 percent one year ago for $1,170. The bond sells for $1,235 today. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? What was your total nominal rate of return on this investment over the past year?
Suppose you bought a bond with an annual coupon of 6 percent one year ago for $1,170. The bond sells for $1,235 today. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? What was your total nominal rate of return on this investment over the past year?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 17P
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Suppose you bought a bond with an annual coupon of 6 percent one year ago for $1,170. The bond sells for $1,235 today. |
Assuming a $1,000 face value, what was your total dollar |
What was your total nominal |
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