Question
You purchased a bond with 9 years maturity, 6% coupon rate, annual coupons, and $100 face value trading at a yield to maturity of 9.4%.
You purchased a bond with 9 years maturity, 6% coupon rate, annual coupons, and $100 face value trading at a yield to maturity of 9.4%. After one year of holding the bond and right after receiving the first coupon, you decide to sell the bond. If the yield to maturity when you sell the bond is 2.8%, what rate of return would you receive on this investment over the one year?
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The Municipal Budget Crunch A Handbook For Professionals
Authors: Roger L. Kemp
1st Edition
0786463740, 978-0786463749
