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a 22. Consider a $1000 par value bond with an 8 percent coupon rate. The bond pays interest annually. The yield on the bond today
a 22. Consider a $1000 par value bond with an 8 percent coupon rate. The bond pays interest annually. The yield on the bond today (ra) is 9.5% and there are 15 years remaining until maturity. If you buy the bond today and sell it one year from today when the yield (ra) is 9%, what rate of return would you make (realized rate of return) on the bond? a. 4.29% b. 4.48% c. 12.97% d. 13.24% e. 13.55%
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