Question: A 6 25 percent coupon bond with 22 years left to
A 6.25 percent coupon bond with 22 years left to maturity is priced to offer a 5.5 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.0 percent. If this occurs, what would be the total return of the bond in dollars and percent? (Assume interest payments are semiannual.)
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