How to calculate money earned off bonds?
Question by Lauren: How to calculate money earned off bonds?
If you bought a bond for $ 102 with a 5.2% coupon rate that pays semi-annually with a maturity of one year, how much money would you make after that one year?
Answer by buz
You’d receive $ 10.40 in interest payments, but since you bought the bond at $ 102, you’d actually have only made $ 8.40
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