1) A corporate bond has a face value of $1000 with maturity date 10 years from today. The bond pays 10% interest per year. You just paid $800 for the bond today. If you keep the bond until it matures, what is the annual rate of return?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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don't use excel also can you show me maths solving with equation by hand please....

1) A corporate bond has a face value of $1000 with maturity date 10 years from
today. The bond pays 10% interest per year. You just paid $800 for the bond
today. If you keep the bond until it matures, what is the annual rate of return?
Transcribed Image Text:1) A corporate bond has a face value of $1000 with maturity date 10 years from today. The bond pays 10% interest per year. You just paid $800 for the bond today. If you keep the bond until it matures, what is the annual rate of return?
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