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Consider a bond (with par value =$1,000 ) paying a coupon rate of 9% per year semiannually when the market interest rate is only 4%
Consider a bond (with par value =$1,000 ) paying a coupon rate of 9% per year semiannually when the market interest rate is only 4% per half-year. The bond has three years until maturity. a. Find the bond's price today and six months from now after the next coupon is paid. (Round your answers to 2 decimal places.) b. What is the total (6-month) rate of return on the bond? (Do not round intermediate calculations. Round your answer to the nearest whole percent.)
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