Six years ago you purchased a bond with 11 years remaining until maturity, a coupon rate of
Question:
Six years ago you purchased a bond with 11 years remaining until maturity, a coupon rate of 3.00% and a yield to maturity of 4.00% at the time of purchase. This morning you received a coupon, and then sold the bond at a yield to maturity of 4.80%. What is the rate of return from 6 months ago to today (expressed as an interest rate, not a dollar amount)?
Please show work; including any potential financial calculator input using the time value of money keys. Any financial calculator key input (aside from showing algebraic work) should be limited to I (interest rate), PMT (Payment), PV (present value), FV (future value), and N (number of periods of payment). "Cash flow" key input (e.g. "CF" on many calculators) is not acceptable. Nor is showing excel input.