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A bond with a coupon rate of 9 . 5 % and a price of $ 8 3 0 just yesterday paid a coupon. A

A bond with a coupon rate of 9.5% and a price of $830 just yesterday paid a coupon. A total
of 16 coupons remain to be paid. Suppose you buy the bond at todays price, hold it and
receive 5 coupons, and then sell the bond. If at the time you sell the bond its YTM has
decreased by 0.5% find the bond selling price and the annual rate of return throughout the
investment horizon.

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