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Yesterday you bought a five-year, $1,500 bond with a 5% coupon (paid annually) and a 5% yield to maturity. Today, the yield on similar risk
Yesterday you bought a five-year, $1,500 bond with a 5% coupon (paid annually) and a 5% yield to maturity. Today, the yield on similar risk bonds rose to 6%. If market interest rates remain at 6% until the bond matures, what return will you actually realize on your bond investment?
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4.52%
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6.29%
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5.89%
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5.09%
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