Question
two years ago, the price of a bond was $923.00, and one year ago, the price of the bond was $987.00. Over the past year,
two years ago, the price of a bond was $923.00, and one year ago, the price of the bond was $987.00. Over the past year, the bond paid a total of $72.00 in coupon payments, which were just paid. If the bond is currently priced at $962.00, then what was the rate of return for the bond over the past year (from 1 year ago to today)? The par value of the bond is $1,000. 4.76 (plus or minus .02 percentage points) 14.73 (plus or minus .02 percentage points) 4.89 (plus or minus .02 percentage points) 11.43 (plus or minus .02 percentage points) None of the above is within .02 percentage points of the correct answer
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