A 5000 face value industrial bond can be purchased for 4920, Financial Management

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A 5000 face value industrial bond can be purchased for 4920

A $5,000 face value industrial bond can be purchased for $4,920. Its interest rate is 8% and it pays interest semi annually and will mature in eight years.

What is the effective rate of return on the bond?

What is the effective rate of return that the purchaser can expect to receive if the bond is purchased?

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Financial Management: A 5000 face value industrial bond can be purchased for 4920

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Financial Management: A 5000 face value industrial bond can be purchased for 4920

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