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You bought a bond today that has a $1,000 par value and makes semiannual coupon payments. The bond has a coupon rate of 8%, a

You bought a bond today that has a $1,000 par value and makes semiannual coupon payments. The bond has a coupon rate of 8%, a YTM of 6%, and has 15 years to maturity. What is the price of this bond today? Six months later, the YTM goes up to 7%. If you sell the bond in 6 months after receiving a coupon payment, what do you expect the selling price of this bond? What will be your total dollar return on this bond investment over the 6-month holding period? What is the rate of return over the 6-month holding period?

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