You bought a 10-year, 5% coupon bond for $ 1,000 and sold it 1 year later for

Question:

You bought a 10-year, 5% bond for $ 1,000 and sold it 1 year later for $1,100. What is the rate of return on your investment if the bond pays interest annually?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...