Mike buys a corporate bond with a face value of$1000 for
Chapter , Problem 7-35(choose chapter or problem)
Mike buys a corporate bond with a face value of$1000 for $900. The bond matures in 10 years andpays a coupon interest rate of 6%. Interest is paidevery quarter.(a)Determine the effective rate of return if Mikeholds the bond to maturity.(b)What effective interest rate will Mike get if hekeeps the bond for only 5 years and sells it for$950?
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