Discuss how investors arrive at a desired rate of return

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Reference no: EM131020601

1. The coupon rate is also known as the stated rate. How is this interest generally paid? Is there any time when no cash flow is received from a bond?

2. Discuss how investors arrive at a desired rate of return for a bond

3. Explain why a bond's yield-to-maturity is the "effective rate" that the holder of the bond expects to receive

4. Briefly discuss the relationship between the formulas used to calculate (a) the after-tax yield, and (b) the taxable equivalent yield of a bond

Make sure to include references

Reference no: EM131020601

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