Take a shot,what do you think.
Hint: an investment today of 975 will be worth 1060 one year from now. What is the rate of return?
Suppose a Midwest Telephone and Telegraph (MTT) Company bond,
maturing in 1 year, can be purchased today for $975. Assuming that the
bond is held until maturity, the investor will receive $1,000 (principal) plus
6 percent interest (that is, 0.06 3 $1,000 5 $60). Determine the percentage
holding period return on this investment.
2 answers
8.71
0 answers