q25.

Yesterday you bought a five-year, $1,500 bond with a 5% coupon (paid annually) and a 5% yield to maturity. Today, the yield on similar risk bonds rose to 6%. If market interest rates remain at 6% until the bond matures, what return will you actually realize on your bond investment?

Multiple Choice

• 6.29%

• 4.52%

• 5.89%

• 5.09%