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Six months ago you bought a newly-issued semi-annual-coupon 10-year bond with a coupon rate of 12% per annum when it had a YTM of 12%
Six months ago you bought a newly-issued semi-annual-coupon 10-year bond with a coupon rate of 12% per annum when it had a YTM of 12% per annum. Today is a coupon date and you just received the first coupon. The YTM today is still 12% per annum. If you sell the bond now, what is your total rate of return on the bond over the six months? Round your answer to two decimal places. Do not annualize your answer.
A. | -37.40%
| |
B. | -6.50% | |
C. | 0.00%
| |
D. | +6.00%
| |
E. | +12.00%
|
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