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Rudy purchased a 7.5% coupon rate bond one year ago for its face value of $100. He bought the bond just after the coupon date.
Rudy purchased a 7.5% coupon rate bond one year ago for its face value of $100. He bought the bond just after the coupon date. Yesterday the bond paid its annual coupon. The bond currently has 17 years until maturity and has a yield to maturity of 7.395%. If Rudy sells the bond today, then what is his return for the last year?
Express your answer in percentage form rounded to one decimal place.
Unsure of which formula needs to be used in order to find the answer, tried a couple of different things but could never get the correct one.
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