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Suppose you buy a bond with a coupon of 6 percent today for $ 1 , 0 8 0 . The bond has 1 0
Suppose you buy a bond with a coupon of percent today for $ The bond has years to maturity. Assume interest payments are reinvested at the original YTM
What rate of return do you expect to earn on your investment?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
bTwo years from now, the YTM on your bond has increased by percent, and you decide to sell. What price will your bond sell for?
Note: Do not round intermediate calculations. Round your answer to decimal places.
bWhat is the annual realized yield on your investment?
Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
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