Question
Last year, you purchased a bond that had 12 years to maturity and a coupon rate of 9% at a YTM of 10%. One year
Last year, you purchased a bond that had 12 years to maturity and a coupon rate of 9% at a YTM of 10%.
One year later you sell the bond at a YTM of 7%.
What was your one year rate of return on this investment?
Enter your answer in decimals (not percent) and round your answer to 4 decimal places. For example, 0.1234.
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
5th edition
1111527369, 978-1111527365
