A 7% coupon bond has a par value of $1,000. You purchase the bond at par value when it has exactly 14 years remaining until maturity. You hold the bond for 6 months, collect the coupon payment, and then sell the bond immediately. If the bond's yield-to-maturity is 5% when you sell it, what is your percentage return over this 6-month holding period? DO NOT annualize your answer. Enter your answer as a decimal and show 4 decimal places. For example, if your answer is 6.25%, enter .0625. Type your answer...

A 7% coupon bond has a par value of $1,000. You purchase the bond at par value when it has exactly 14 years remaining until maturity. You hold the bond for 6 months, collect the coupon payment, and then sell the bond immediately. If the bond's yield-to-maturity is 5% when you sell it, what is your percentage return over this 6-month holding period? DO NOT annualize your answer. Enter your answer as a decimal and show 4 decimal places. For example, if your answer is 6.25%, enter .0625. Type your answer...

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 8P

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