You buy a bond for $980 that has a coupon rate of 8% and a 10-year maturity.

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You buy a bond for $980 that has a coupon rate of 8% and a 10-year maturity. A year later, the bond price is $1,200. (Assume a face value of $1,000 and annual coupon payments.

What is the new yield to maturity on the bond?

What is your rate of return over the year?

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Posted Date: Oct 08, 2018 12:23 AM

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You buy a bond for $980 that has a coupon rate of 8% and a 10-year maturity.

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Fundamentals of Corporate Finance

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