Only question #5

In all the following, assume the investor has a one year horizon (and annual compounding) I. The investor purchases a 10-year bond with a 6% coupon (face value 100) and 6.5% yield. She expects to sell the bond on her horizon at a 6% yield. What is her expected Rate-of-Return ROR)? 2. Suppose instead the bond's yield on the horizon date is 6.25%. What is her actual ROR? ROR if yield on horizon turns out to be 6.25%? 4. Keep the bond in question 1 as a 10-year maturity, but change the coupon to 9%. What is ROR if yield on horizon turns out to be 6.25%. 5. Return to the original bond in 1. What is ROR if yield on horizon is 6.5%