Your required rate of return

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Reference no: EM131880601

A) You own a bond that pays $100 in annual interest with a $1,000 par value. It matures in 5 years. Your required rate of return is

1) 12 percent

2) 10 percent

3) 8 percent

B) How does A) change if we change our maturity to 10 years and the required return is

1) 12 percent

2) 10 percent

3) 8 percent

C) How does A) change if we change our maturity to 20 years and the required return is

1) 12 percent

2) 10 percent

3) 8 percent

Reference no: EM131880601

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