7% coupon bond with a $1000 face value and coupons paid semiannually is purchased at par and sells 2 years later for $990 after a coupon payment.What is its realised yield (annualised) ?
A) 8%
B) 6.52%
C) 7.32%
D) 5.75%
Correct Answer:
Verified
Q41: Price risk and reinvestment risk:
A)relate to interest
Q42: Which of the following risks does NOT
Q43: A 3-year zero coupon bond with a
Q44: Which of the following statements is NOT
Q45: If market interest rates fall after a
Q47: Price risk and reinvestment risk partly offset
Q48: The bond's yield to maturity is
A)the guaranteed
Q49: Which of the following statements is NOT
Q50: What is time value of money?
Q51: Duration is a measure of:
A)a bond's yield
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents