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Question 13 2.5 pts A 6.75 percent coupon bond with 10 years left to maturity is priced to offer a 6.5 percent yield to maturity.

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Question 13 2.5 pts A 6.75 percent coupon bond with 10 years left to maturity is priced to offer a 6.5 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.20 percent. If this occurs, what would be the total return of the bond in percent? (Assume semi-annual interest payments and $1,000 par value.) Hint: compute the current price, compute the price in one year, estimate the total return (capital gains + interest), estimate the return in percent. O 8.53 percent O 8.70 percent 5.50 percent 7.6 percent

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