Two years ago, the price of a bond was $920.00, and one year ago, the price of the bond was $979.00. Over the past year, the bond paid a total of $73.00 in coupon payments, which were just paid. If the bond is currently priced at $959.00, then what was the rate of return for the bond over the past year (from 1 year ago to today)? The par value of the bond is $1,000. 10000 11.89 (plus or minus .02 percentage points) 14.35 (plus or minus .02 percentage points) 5.41 (plus or minus .02 percentage points) 5.53 (plus or minus .02 percentage points) None of the above is within .02 percentage points of the correct answer
Two years ago, the price of a bond was $920.00, and one year ago, the price of the bond was $979.00. Over the past year, the bond paid a total of $73.00 in coupon payments, which were just paid. If the bond is currently priced at $959.00, then what was the rate of return for the bond over the past year (from 1 year ago to today)? The par value of the bond is $1,000. 10000 11.89 (plus or minus .02 percentage points) 14.35 (plus or minus .02 percentage points) 5.41 (plus or minus .02 percentage points) 5.53 (plus or minus .02 percentage points) None of the above is within .02 percentage points of the correct answer
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
Related questions
Question
Don't use Excel and pen or paper
Transcribed Image Text:Two years ago, the price of a bond was $920.00, and one year ago, the price of the bond was $979.00. Over the past
year, the bond paid a total of $73.00 in coupon payments, which were just paid. If the bond is currently priced at
$959.00, then what was the rate of return for the bond over the past year (from 1 year ago to today)? The par value
of the bond is $1,000.
11.89 (plus or minus .02 percentage points)
14.35 (plus or minus.02 percentage points)
5.41 (plus or minus .02 percentage points)
5.53 (plus or minus .02 percentage points)
None of the above is within .02 percentage points of the correct answer
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education