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# Bond Prices

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At the beginning of the year, you bought a \$1,000 par value corporate bond with a 6% annual coupon rate and a 10 year maturity date. When you bought the bond, it had an expected yield to maturity of 8%. Today the bond sells for \$1,060.

A) What did you pay for the bond?
B) If you sold the bond at the end of the year, what would be your one-period return on the investment?

https://brainmass.com/economics/bonds/239310

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A) I would tell you the method in Excel again. Use the following formula in ...

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Overall, an excellent response with a great amount of detail. The solution is very easy to understand and very well explained. Step by step instructions are given so that a student can solve similar questions.

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