A 6% semiannual coupon bond has a par value of $1.000 and a yield-to-maturity of 10%. You purchase the bond when it has exactly 11 years remaining until maturity. You hold the bond for 1 years, collect the coupon payments, and then sell the bond immediately after the last coupon payment. If the bond's yield-to-maturity is 9% when you sell it, what is your percentage return over this 1-year holding period? Enter your answer as a percentage and show 2 decimal places. For example, if your answer is .0625, enter 6.25.

A 6% semiannual coupon bond has a par value of $1.000 and a yield-to-maturity of 10%. You purchase the bond when it has exactly 11 years remaining until maturity. You hold the bond for 1 years, collect the coupon payments, and then sell the bond immediately after the last coupon payment. If the bond's yield-to-maturity is 9% when you sell it, what is your percentage return over this 1-year holding period? Enter your answer as a percentage and show 2 decimal places. For example, if your answer is .0625, enter 6.25.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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