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Taussig Corp.'s bonds currently sell for $1020. They have a 6.5% annual coupon rate and a 10year maturity. What rate of return should an investor expect to earn if he or she purchases these bonds?

User Razzer
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1 Answer

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Principal = $1020
annual rate= 6.5%
time = 10 years
Amount = 1020 [1 + 0.65/100]^10
Amount = 1914.68

Rate of return =
((1914.68-1020)*100)/(1020)
Rate of return = 87.71% Answer


User Kenson
by
8.8k points
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