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You purchased an annual interest coupon bond one year ago that had four years remaining to maturity at that time. The coupon interest rate was
You purchased an annual interest coupon bond one year ago that had four years remaining to maturity at that time. The coupon interest rate was 10% and the par value was $1,000. At the time you purchased the bond, the yield to maturity was 8%. If you sold the bond after holding it for exactly one year receiving the coupon payment at the end of your holding period. The yield to maturity of the bond by the end of your holding period was 7%. What was your holding period rate of return on the bond for that one year?
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