What is the actual rate of return or holding period return

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Reference no: EM131203410

A 10 year bond issued today by Carris, Inc. has a coupon rate of 10%, a required return of 6% and a face value of $1,000. The bond will be sold 5 years from now when interest rates will be 8%. What is the actual rate of return (or holding period return) over this 5 year period? Round to the nearest percent. A. 22% B. 25% C. 8% D. 18%

Reference no: EM131203410

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What is the actual rate of return or holding period return : A 10 year bond issued today by Carris, Inc. has a coupon rate of 10%, a required return of 6% and a face value of $1,000. The bond will be sold 5 years from now when interest rates will be 8%. What is the actual rate of return (or holding period retu..

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