A coupon bond of 7.9 percent with 15 years left to maturity is priced to offer a 6.45 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.2 percent. (Assume interest payments are semiannual.)

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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A coupon bond of 7.9 percent with 15 years left to maturity is priced to offer a 6.45 percent yield to maturity. You believe
that in one year, the yield to maturity will be 7.2 percent. (Assume interest payments are semiannual.)
What would be the total return of the bond in dollars?
What would be the total return of the bond in percentage?
Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.
Total return in dollars
Total return in percentage
Check my work
%
Transcribed Image Text:A coupon bond of 7.9 percent with 15 years left to maturity is priced to offer a 6.45 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.2 percent. (Assume interest payments are semiannual.) What would be the total return of the bond in dollars? What would be the total return of the bond in percentage? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Total return in dollars Total return in percentage Check my work %
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