Answer to Question #271569 in Economics for Anilee

Question

A Rs 1,000 par value bond carries a coupon of 10 percent (payable annually) and has a remaining maturity of four years. The bond is presently selling for Rs.1020. The reinvestment rate applicable to the future cash inflows of the bonds is nine percent per annum. What will be the realised yield to maturity?

Answer 1

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