What is rate of return over three-year period

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A bond issued by L'Oréal in France has a coupon rate of 6 percent, a face value of 100 euros, and matures in five years. The bond pays annual interest payments. Calculate the price of the bond (in euros) if the yield to maturity is 4.5 percent.

A bond issued by L'Oréal in France has a coupon rate of 6 percent, a face value of 100.00 euros, and matures in five years. The bond pays annual interest payments. Calculate the yield to maturity of the bond (in euros) if the price of the bond is 106.00 euros.

You buy a 30-year 5 percent annual coupon bond at par value, £1,000. You sell the bond three years later for £1,050. What is your rate of return over this three-year period?

Reference no: EM132766301

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