Question
You buy an 8% coupon, 10-year maturity bond for $980. A year later, the bond price is $1,200. a. What is the new yield to
| You buy an 8% coupon, 10-year maturity bond for $980. A year later, the bond price is $1,200. |
| a. | What is the new yield to maturity on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| Yield to maturity | % |
| b. | What is your rate of return over the year? (Round your answer to 2 decimal places.) |
| Rate of return | % |
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College Physics
Authors: Jerry D. Wilson, Anthony J. Buffa, Bo Lou
7th edition
9780321571113, 321601831, 978-0321601834
