What will her percentage return be

Reference no: EM13289899

A $1000 par value bond was issued 25 years ago at a 7 percent coupon rate. It currently has 10 years remaining to maturity. Interest rates on similar debt obligations are now 12 percent.

Assume Mrs. Pinson buys the bond at its current market value and holds it to maturity, what will her percentage return be?

Reference no: EM13289899

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