Hi, In reading 27: a) practice problem 2… about buying a bond borrowing 60%… shouldn´t this one be included in reading 29, which is the one that covers leverage??? b) just for curiosity… in page 338, total coupons are easy to calculate, interest on interest is also easy to calculate for each yield, so you can get the “accumulated value”. Ok, but… how do they get those total return rates??? for example, if yields move to 11%, and accumulated value is 14 usd mio compared to purchase price of 9.6 usd, the total return is about 48% (14/9.6 -1). I don´t see how they come up with that “8.04%”… thanks a lot
Forget about b… I didn´t see they are just taking the equivalent per semester and then x2 to get the p.a. equivalent…