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Ten years ago you purchased a 30-year 9% coupon bond. At that time, the market rate of interest was 6.5%. Today, you sell the bond
Ten years ago you purchased a 30-year 9% coupon bond. At that time, the market rate of interest was 6.5%. Today, you sell the bond (the current market rate of interest is 10.5%). 5a. How much did you pay for the bond when you purchased it 10 years ago? 5b. How much can you sell the bond for today? 5c. What rate of return did you earn on your investment over the 10-year period that you held the bond?
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