An investor is considering the purchase of an 8%, 18-year corporate bond that's being priced to yield 10%. She thinks that in a year, this same bond will be prices in the market to yield 9%. Using annual compounding, find the price of the bond today and in 1 year. Next, find the holding period return on this investment, assuming that the investor's expectations are borne out.© BrainMass Inc. brainmass.com June 3, 2020, 11:18 pm ad1c9bdddf
The solution examines convertible bonds from investors. The expert finds the holding period return on this investment.