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Consider a bond waying a coupon rate of 1 1 . 0 0 % per year semiannually when the market interest rate is only 4
Consider a bond waying a coupon rate of per year semiannually when the market interest rate is only per halfyear. The bond has six years until maturity.
Required:
a Find the bond's price today and six months from now after the next coupon is paid.
Note: Do not round intermediate calculations. Round your answers to decimal places.
tableCurrent price,Price after six months,
b What is the total rate of return on the bond?
Note: Do not round intermediate calculations. Round your answer to decimal places.
Total rate of return
per six months
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