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Pasha bought 10-year AlphaCat bonds at their par value of $1,000 when they were issued one year ago. These bonds pay annual interest of 8.0%
Pasha bought 10-year AlphaCat bonds at their par value of $1,000 when they were issued one year ago. These bonds pay annual interest of 8.0% on a semi-annual basis. Over the year that Pasha has owned the AlphaCat bonds their market value has increased to $1,020. What is the total yield that Pasha has earned over the past year from this investment in AlphaCat bonds?
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