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14 Dec 2018
One bond has a coupon rate of 8%, another coupon rate of 12%. Both bonds have 10-year maturities and sell at a yield to maturity of 10%. If their yields to maturity next year are still 10%, what is the rate of return on each bond? Does the higher coupon bond give a higher rate of return? (Using your financial calculator)
One bond has a coupon rate of 8%, another coupon rate of 12%. Both bonds have 10-year maturities and sell at a yield to maturity of 10%. If their yields to maturity next year are still 10%, what is the rate of return on each bond? Does the higher coupon bond give a higher rate of return? (Using your financial calculator)
Collen VonLv2
17 Dec 2018
