by goldenboy on July 14th, 2009

goldenboy

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Calculate bond yield for this investor? he purchased a bond at a market price of 23.5% of the face value in october 1 2000 and the bond is redeemed in january 1st 2020 at a price of 110% of the face value. if the face value is 1000 and the bond pays coupo

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  • by puzzled on October 2nd, 2009

    puzzled

    The bond yield is 10% over 20 yrs
    an equivalent annual rate of 0.477%

    Total return is 468.085% over 20 years on the purchase price.
    An equivalent annual rate of return of 8.02%

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