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F. Naz
F. Naz, B.Com
Category: Single Problem
Satisfied Customers: 5319
Experience:  Have completed B.Com and CA Finalist
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Assume an investor with a 5 year investment

Customer Question

assume an investor with a 5 year investment horizon is considering purchasing a 7 year 6% coupon bond selling at par. The investor expects to reinvest the coupons at 5% and that the bond will be selling to offer a yield to maturity of 4% in five years.
What is the expected total return for this bond? Express your answer on a bond-equivalent basis and an effective annual rate basis.
Submitted: 2 years ago.
Category: Single Problem
Expert:  F. Naz replied 2 years ago.
What is your deadline, thanks.
Customer: replied 2 years ago.
tonight 11Pm.
Expert:  F. Naz replied 2 years ago. equivalent.xls
answers are at above link, thanks.

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