You buy a bond with a $1,000 par value today for a price of $865 The bond has 6 years to maturity and makes annual coupon payments of $73 per year You hold the bond to maturity, but you do not reinvest any of your coupons What was your effective EAR over the holding period ...

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You buy a bond with a $1,000 par value today for a price of $865. The bond

Question:

You buy a bond with a $1,000 today for a price of $865. The bond has 6 years to and makes annual payments of $73 per year. You hold the bond to but you do not reinvest any of your coupons. What was your effective EAR over the holding period?
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... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...