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Suppose an investor with a 5 year investment horizon purchases a 7 year 6.60% coupon bond (paid semi-annually) selling at par. The investor expected to
Suppose an investor with a 5 year investment horizon purchases a 7 year 6.60% coupon bond (paid semi-annually) selling at par. The investor expected to reinvest the coupon payments at an annual rate of 6.8%, and that at the end of the investment horizon, 2 year bonds will be selling to offer a yield to maturity of 6.2%. what is the total return % for this bond?
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