What is the holding period yield for an investor who pays $1,145 for a bond with a $1,000 face value and a 5% coupon and sells the bond three years later for $1,420???? a. 5.00% b. 6.86% c. 11.52% d. 3.78%

What is the holding period yield for an investor who pays $1,145 for a bond with a $1,000 face value and a 5% coupon and sells the bond three years later for $1,420???? a. 5.00% b. 6.86% c. 11.52% d. 3.78%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1.What is the holding period yield for an investor who pays $1,145 for a bond with a $1,000 face value and a 5% coupon and sells the bond three years later for $1,420????

a. 5.00%

b. 6.86%

c. 11.52%

d. 3.78%

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