Question
Suppose you buy a 9.6 percent coupon bond today for $1,090. The bond has 6 years to maturity. a. What rate of return do you
Suppose you buy a 9.6 percent coupon bond today for $1,090. The bond has 6 years to maturity. a. What rate of return do you expect to earn on your investment? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Rate of return: 7.67%
b-1. Two years from now, the YTM on your bond has increased by 2 percent, and you decide to sell. What price will your bond sell for? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price: $997.77
b-2. What is the annual realized yield on your investment? (Negative amounts should be indicated by a minus sign. Round your answer to 2 decimal places. Omit the "%" sign in your response.) Realized return %
I need helping figuring out b-2) What is the annual realized yield on your investment? I have figured out the rest. Please HELP!
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