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    Intel 9% coupon bond: What is average annual rate of return?

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    Assume the Intel Corporation's $1,000 face value 9 percent coupon rate bond matures in 10 years and sells for $1,100. If you purchase the bond for $1,100 and hold it to maturity, what will be your average annual rate of return on the investment?

    Please explain how you come up with answer.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:07 pm ad1c9bdddf
    https://brainmass.com/business/bond-valuation/intel-coupon-bond-average-annual-rate-return-264400

    Solution Summary

    The solution shows the calculations to arrive at an answer.

    $2.19

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