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Author Question: Company A has a bond outstanding that pays a 9% coupon. The interest is paid annually, and the bond ... (Read 60 times)

connormoss

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Company A has a bond outstanding that pays a 9% coupon. The interest is paid annually, and the bond matures in 15 years. The market rate of interest on bonds of similar risk is 6.5% and the bond is selling for $1,235.07. One year from today, the bond is expected to be selling for $1,225.35. What is the rate of return for the bondholder?

–0.0787%


5.2300%


6.0000%


6.5000%



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Marked as best answer by connormoss on Aug 7, 2023

LynellDool

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    • i thought about discounts
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connormoss

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Reply 2 on: Aug 7, 2023
Gracias!


Perkypinki

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Reply 3 on: Yesterday
Wow, this really help

 

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