Don't provide handwritten solution. You purchased a 5% coupon 10-year bond six years ago for $2,079.82. The bond with a par value of $2,000 paid semi-annual coupons. You held the bond for six years and liquidate your position in the bond today. One day after you purchased the bond, interest rates rose to 5 percent and remained unchanged since then. Calculate the (annual) rate of return realized on your investment

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Q: Calculate the (annual) rate of return realized on your investment

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Q: Duration of this bond years

A: We can determine the duration of the bond by rearranging the formula below:

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