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taking the homework. Question 4 10 pts You buy a bond issued by Terlingua Oil & Gas Exploration Corp. The coupon rate is 10%, and

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taking the homework. Question 4 10 pts You buy a bond issued by Terlingua Oil & Gas Exploration Corp. The coupon rate is 10%, and coupons are paid semi-annually. Par of your bond is $10,000. The bond matures in 10 years. Your price today on the bond is $9,000 In six months, the YTM on the bond has risen by 1%. You collect the coupon payment and sell the bond. What is your effective annual rate of return? Hint: see Example 7 in the Lecture. O 0.50% O 1.00% O 1.50% O 2.05% O 1.72%

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