Question
What would the rate of return on a bond purchased for $975 and sold a year later for $985 be if the bond has a
What would the rate of return on a bond purchased for $975 and sold a year later for $985 be if the bond has a face or par value of $1,000 and a coupon rate of 5%?
Enter your answer as a percentage rounded to two decimals. In other words, if your answer is 8.87%, enter 8.87
Question 12
Calculate the duration of a $1,000 face or par value bond with a coupon rate of 3% and 5 years to maturity if the going rate of interest (or yield) is 4%.
Enter your answer to two decimal places. In other words, if your answer is 8.746532, enter 8.75
Question 13
If you purchase a $1,000 face value, 4% annual coupon bond with 6 years to maturity when the going interest rate (or yield) is 3%, then you would pay $1,054.17 for the bond. What is your expected rate of return on the bond assuming interest rates do not change and you hold the bond to maturity?
Enter your answer as a percentage rounded to two decimals. In other words, if your answer is 3.39%, enter 3.39
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