You bought a 15 year maturity bond with a coupon rate of 10% paid semi-annually. You will sell this bond two years from
Posted: Wed May 18, 2022 11:19 pm
You bought a 15 year maturity bond with a coupon rate of 10%
paid semi-annually. You will sell this bond two years from now. The
reinvestment rates are 10% in year 1 and 8% in year 2 and will
remain constant for the remainder of its duration. You sell this
bond after two years at a price closer to: a. At discount b. $ 1170
c. $1159 d. Above $1170 e. None of the above
paid semi-annually. You will sell this bond two years from now. The
reinvestment rates are 10% in year 1 and 8% in year 2 and will
remain constant for the remainder of its duration. You sell this
bond after two years at a price closer to: a. At discount b. $ 1170
c. $1159 d. Above $1170 e. None of the above