Posted by **nick** on Sunday, September 30, 2012 at 5:49am.

1.You buy a SML Bond for $980. The bond has a face value of $1000 and an annual coupon rate of 8%. There are 5 years left until maturity.

Because of a special delivery by the stork, you decide to sell the bond at the end of year 2 for $1050. What was your return? Why does this differ from the yield to maturity? Assume you do get the first two coupon payments.

## Answer This Question

## Related Questions

- Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...
- Finance - A three-year bond has 8.0% coupon rate and face value of $1000. If the...
- Finance - Bond Yields. An AT&T bond has 10 years until maturity, a coupon rate ...
- finance - A manufacturing company issues a bond with a 100,000 face value and a ...
- finance - (Bond valuation) Eagle Ventures has a bond issue outstanding with an ...
- finance - A General Power bond with a face value of $1,000 carries a coupon ...
- Finance - The Carter Company's bond mature in 10 years have a par value of 1,000...
- Finance - (Bond valuation) A $1,000 face value bond has a remaining maturity of ...
- Finance - Bond value and time--Constant required returns Pecos Manufacturing has...
- Finance - Seven years ago a semi-annual coupon bond with a 10% coupon rate, $1,...

More Related Questions