Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
Section: Chapter Questions
Problem 13PAE
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Question
4.
Use a different graph for each one and clearly label the axis and the shifting of
clearly (in words and on the graph) whether the price and yield to maturity increased or
decreased.
4. You buy a bond that pays annual interest payments of 8% of the bond’s face value of $1000.
You initially pay $1050 for the bond. You receive an annual interest payment after one
year, then sell the bond for $1010. What is your total rate of
expressed as a percentage of the purchase price?
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