Risk Free System

lucy and ethel asked:


the following conditions:
The bond pays a coupon of 11%
The coupon payments are paid annually.
The required rate of return on similar-risk investments is 9%.
The bond matures in 15 years

Harrison

lucy and ethel asked:


the following conditions:
The bond pays a coupon of 7%
The coupon payments are paid semi-annually.
The required rate of return on similar-risk investments is 7%.
The bond matures in 10 years

Landyn

Pamela Y. asked:


I know that I can use the average rate of return of the S&P or the Dow … any idea what the current annual rate of return on either of these is? Thanks!

Jaquan