14. A corporate bond is sold for $920. It pays interest of $60 every year and is valid for 10 years. At the end of 10 years, the bond issuer will redeem the bond for $1000. If you purchase the bond and hold it for the 10 years, what would your rate of return be?
14. A corporate bond is sold for $920. It pays interest of $60 every year and is valid for 10 years. At the end of 10 years, the bond issuer will redeem the bond for $1000. If you purchase the bond and hold it for the 10 years, what would your rate of return be?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 11P
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