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A 10% coupon bond has a par value of $1,000 and a yield-to-maturity of 5% . You purchase the bond when it has exactly 10

A

10%

coupon bond has a par value of

$1,000

and a yield-to-maturity of

5%

. You purchase the bond when it has exactly 10 years remaining until maturity. You hold the bond for 6 months, collect the coupon payment, and then sell the bond immediately. If the bond's yield-to-maturity doesn't change between the time you buy and sell the bond, what is your percentage return over this 6 month holding period? Enter your answer as a decimal and show 4 decimal places. For example, if your answer is

6.25%

, enter .0625 .

image text in transcribed
A 10% coupon bond has a par value of $1,000 and a yield-to-maturity of 5%. You purchase the bond when it has exactly 10 years remaining until maturity. You hold the bond for 6 months, collect the coupon payment, and then sell the bond immediately. If the bond's yield-to-maturity doesn't change between the time you buy and sell the bond, what is your percentage return over this 6month holding period? Enter your answer as a decimal and show 4 decimal places. For example, if your answer is 6.25%, enter .0625

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