FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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What is return as a percentage

A ten-year government bond makes annual coupon payments of 7% and offers a yield of 3% annually compounded. Suppose that three years later the bond yields 2%. What return has the bondholder earned over the 36-month period?
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Transcribed Image Text:A ten-year government bond makes annual coupon payments of 7% and offers a yield of 3% annually compounded. Suppose that three years later the bond yields 2%. What return has the bondholder earned over the 36-month period?
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