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You bought a bond with 7% coupon rate, 10 year maturity, and $1000 par value for $781 one year ago. Today the bond has a

You bought a bond with 7% coupon rate, 10 year maturity, and $1000 par value for $781 one year ago. Today the bond has a price of $919. If you sell the bond today, what is your return on the investment?

Selected Answer:

8.36

Correct Answer:

0.266 0.006

If a bond has duration of 9 years with a bond price of 1000 and a yield to maturity of 7%. If the yield to maturity decreases by 1%. How much will bond price change?

Selected Answer:

68.01

Correct Answer:

84.11 1

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