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