Assume you own a bond with a market value of $ 820 that matures in 7 years The par value of the bond is $ 1,000 Interest payments of $ 30 are paid semiannually What is your expected rate of return on the bond ...

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Assume you own a bond with a market value of $ 820 that matures in 7 years.

Question:

Assume you own a bond with a market value of $ 820 that matures in 7 years. The of the bond is $ 1,000. Interest payments of $ 30 are paid semiannually. What is your expected rate of return on the bond?
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...