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You buy an 8% annual coupon bond from CARRIS Inc. that has a 25 year maturity

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Please answer the following question using one of the four answers listed below;You buy an 8% annual coupon bond from CARRIS Inc. that has a 25 year maturity and a required return of 12%. The par value is $1,000. You sell the bond five years later when the required return is 10%. What is the actual rate of return (or holding period return) over this 5 year period? Round to the nearest percent. (This will be easier to answer if you've already answered the other two questions regarding the CARRIS bond.);1) 41%;2) 79%;3) 13%;4) 33%;Additional Requirements;Min Pages: 1

 

Paper#29905 | Written in 18-Jul-2015

Price : $27
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