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You buy a(n) 5.7% coupon, 9-year maturity bond for $988. A year later, the bond price is $1,168. Assume coupons are paid once a year
You buy a(n) 5.7% coupon, 9-year maturity bond for $988. A year later, the bond price is $1,168. Assume coupons are paid once a year and the face value is $1,000. a. What is the new yield to maturity on the bond (one year from now)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Yield to maturity % b. What is your bond's rate of return over the year? (Round your answer to 2 decimal places.) Rate of return %
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