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Author Question: A US Government bond has 15 years remaining to maturity, pays annual coupons (yesterday) of $90, and ... (Read 94 times)

mpobi80

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on: Apr 25, 2021
A US Government bond has 15 years remaining to maturity, pays annual coupons (yesterday) of $90, and has a face value of $1,000. The current price of the bond is $923.94 to yield 10%. Calculate your return if you buy the bond today, hold it for one year and sell it after the next coupon. What percentage of your return will be attributable to coupon interest (as opposed to capital gain)? (Assume that yields are expected to remain constant at the current level over the bond's life.)
◦ 67%
◦ 77%
◦ 87%
◦ 91%
◦ 97%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by mpobi80 on Apr 25, 2021

mjenn52

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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mpobi80

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

ecabral0

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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