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Return to question Suppose you buy a bond with a coupon of 7.4 percent today for $1,150. The bond has 11 years to maturity.
Return to question Suppose you buy a bond with a coupon of 7.4 percent today for $1,150. The bond has 11 years to maturity. Assume interest payments are reinvested at the original YTM. a. What rate of return do you expect to earn on your investment? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Answer is complete and correct. Rate of return 5.56 % b. Two years from now, the YTM on your bond has increased by 2 percent, and you decide to sell. What price will your bond sell for? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. > Answer is not complete. Price
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