Bonds issued by Glorious Vending Corporation have a coupon rate of 11.99 percent and a face value of $1,000.00, pay semi-annual coupons with one just paidand the next coupon due in 6 months, and mature in 8 years from today. Six months ago, the bonds were priced at $828.77. Today, the bond's yield-to-maturity (YTM) is 15.17 percent. What was the rate of return for the bonds over the past 6 months (from 6 months ago until today)?10.45% (plus or minus 2 bps)17.69% (plus or minus 2 bps)18.01% (plus or minus 2 bps)27.89% (plus or minus 2 bps)none of the answers are within 2 bps of the correct answer

Approach to solving the question: Detailed explanation: Examples: Key references: General Finance

Answered: Bonds issued by Glorious Vending…

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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