Question: At the beginning of the year you bought a

At the beginning of the year, you bought a $ 1,000 par value corporate bond with a 6 percent annual coupon rate and a 10- year maturity date. When you bought the bond, it had an expected yield to maturity of 8 percent. Today the bond sells for $ 1,060.
a. What did you pay for the bond?
b. If you sold the bond at the end of the year, what would be your one- period return on the investment?

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  • CreatedSeptember 11, 2015
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