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Home Q & A Board Science-Related Homework Help Mathematics
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kirstykirst kirstykirst
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9 months ago
During periods of declining interest rates, long-term bonds can provide investors with impressive capital gains. The best example in recent times occurred in the early 1980s. In September 1981 the bond market was pricing long-term bonds to provide a rate of return of over 18.5% compounded semiannually. Suppose you had purchased 10% coupon bonds in September 1981 with 20 years remaining until maturity. Four and one-half years later (in March 1986) the bonds could have been sold at a prevailing market rate of 9.7% compounded semiannually. What would have been your semiannually compounded rate of total return on the bonds during the 4½-year period? Round to the nearest 0.01%
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Business Mathematics in Canada

Business Mathematics in Canada


Edition: 11th
Authors:
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micp3537micp3537
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9 months ago
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kirstykirst Author
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9 months ago
Thank you, thank you, thank you!
derya1234
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Yesterday
Brilliant ツ
elizabetheldrid
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2 hours ago
this is exactly what I needed
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