Question 7 (10 marks) A bond matures in seven years from today. It pays an annual return of €50 and at maturity it pays
Posted: Tue Jan 18, 2022 12:58 pm
- Question 7 10 Marks A Bond Matures In Seven Years From Today It Pays An Annual Return Of 50 And At Maturity It Pays 1 (82.81 KiB) Viewed 41 times
Question 7 (10 marks) A bond matures in seven years from today. It pays an annual return of €50 and at maturity it pays back its initial cost of €1,000. If your annual return expectation from such an investment is 374% how much at a maximum are you prepared to pay now to buy the bond? a