Question
Bond Returns and YTM You buy a(n) 11% coupon, 6-year maturity bond for $1,180.02. A year later, the bond price is $996.31. a. What is
Bond Returns and YTM
| You buy a(n) 11% coupon, 6-year maturity bond for $1,180.02. A year later, the bond price is $996.31. |
| a. | What is the new yield to maturity on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Yield to maturity | % |
| b. | What is your rate of return over the year? (Round your answer to 2 decimal places.) |
| Rate of return | % |
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakin
7th Global Edition
0273754440, 9780273754442
