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An investor bought a $1,000 face-value 5%-coupon (annual) bond at par at the issue date. And she held it for one full year. At the
An investor bought a $1,000 face-value 5%-coupon (annual) bond at par at the issue date. And she held it for one full year. At the time of the sale there are 8 years left until maturity of the bond. Also at the time of the sale (but not on the purchase date !), the applicable market yield is 6%. What is the dollar return of for this investor (including coupon payments) ?
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