You buy a 20-year bond with a coupon rate of 8.2% that has a yield to maturity of 9.2%. (Assume a face value of $1, 000 and semiannual coupon payments.) Six months later, the yield to maturity is 10.2%. What is your return over the 6 months?

You buy a 20-year bond with a coupon rate of 8.2% that has a yield to maturity of 9.2%. (Assume a face value of $1, 000 and semiannual coupon payments.) Six months later, the yield to maturity is 10.2%. What is your return over the 6 months?

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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