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QUESTION 16 One year ago you purchased an 8% coupon rate bond when it was first issued and priced at its face value of $1,000.
QUESTION 16 One year ago you purchased an 8% coupon rate bond when it was first issued and priced at its face value of $1,000. Yesterday the bond paid its second semi-annual coupon. The bond currently has 7 years left until maturity and has a yield to maturity of 6%. If you sell the bond today, what will your return have been from this investment during the year you held the bond and collected the coupon payments? a. -10.6% b. -1.9% c. 8.0% d. 19.3% e. 32.2%
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