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Last year, you bought a bond with face value $1000, maturity 20 years, coupon rate of 7% per year payable semi-annually and yield to maturity
Last year, you bought a bond with face value $1000, maturity 20 years, coupon rate of 7% per year payable semi-annually and yield to maturity of 5.5% per year. Currently the bond sells for $900. How much would be your total yield if you sell this bond today?
A) 10.78%
B) 13.71%
C) (17.84%)
D) (15.79%)
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