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You buy a 1 0 - year $ 5 0 0 0 bond, redeemable at par, with semi - annual coupons at j 2 =

You buy a 10-year $5000 bond, redeemable at
par, with semi-annual coupons at j2=6%. The
bond is bought to yield j2=6%. Two years
later, you decide to sell the bond. What rate of
return do you earn for the 2 years that you
owned the bond if, after the 2-year period, yield
rates have
(a) Remained at j2=6%
(b) Decreased to j2=5%
(c) Increased to j2=7%

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