Question
A) You buy a bond for $976 that has a coupon rate of 7.4% and a 5-year maturity. A year later, the bond price is
A) You buy a bond for $976 that has a coupon rate of 7.4% and a 5-year maturity. A year later, the bond price is $1,136. (Assume a face value of $1,000 and annual coupon payments.) What is your rate of return over the year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Please show work so I can see how it"s done. Thank you. |
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