Business, 18.08.2021 03:30 icantdomath6303
Assume interest rates in the market (yield to maturity) decline from 12 percent to 10 percent.
Required:
a. What is the bond price at 12 percent
b. What is the bond price at 4 percent?
c. What would be your percentage return on investment if you bought when rates were 12 percent and sold when rates were 4 percent?
Answers: 2
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Assume interest rates in the market (yield to maturity) decline from 12 percent to 10 percent.
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