A bond has a face value of $25000 and pays an annual coupon rate of 5.2%. The bond is selling for $25000 now and is expected to be sold for $25080 one year from now. What is the bond's expected rate...


A bond has a face value of $25000 and pays an annual coupon rate of 5.2%. The<br>bond is selling for $25000 now and is expected to be sold for $25080 one year from<br>now. What is the bond's expected rate of return?<br>Answer:<br>%<br>(DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL<br>ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES.)<br>

Extracted text: A bond has a face value of $25000 and pays an annual coupon rate of 5.2%. The bond is selling for $25000 now and is expected to be sold for $25080 one year from now. What is the bond's expected rate of return? Answer: % (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES.)

Jun 11, 2022
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