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You bought a $1,000, 20-year 12% annual coupon bond at issue. Immediately thereafter the YTM had changed to 10%. Find the total interest at the
You bought a $1,000, 20-year 12% annual coupon bond at issue. Immediately thereafter the YTM had changed to 10%. Find the total interest at the end of year 5. Express your answer in dollar and cents.
- Find the interest-on-interest at the end of year 5. Express your answer in dollar and cents.
- Find the capital gain at the end of year 5. Express your answer in dollar and cents.
- Find thetotal income at the end of year 5. Express your answer in dollar and cents.
- Find the realized return at the end of year 5. Express your answer as a percentage with 3 digits after the decimal point.
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