What is the expected return for your investment

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Reference no: EM132039465

Bond A has a coupon rate of 10%, with a three-year maturity and a face value of $1,000. The discount rate now or future is 10%.

1. If you want to buy bond A now, what is the price you have to pay?

A) $1,000

B) $1,200.

C) $1,250

D) cannot be decided

E) none of the above

2. If you want to buy bond A now and hold it for one year, what is the expected return for your investment?

A) 8%

B) 10%

C) 12%

D) -12%

E) none of the above

10. If you want to buy bond A now and hold it until its maturity, what is the expected total return for your investment?

A) 8%

B) 5%.

C) 4%

D) no enough information

E) none of the above

Reference no: EM132039465

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