Question: A 10-year maturity, 9% coupon bond has a par value of $1,000 and semi-annual coupon payments. You purchase the bond at face value when it

 A 10-year maturity, 9% coupon bond has a par value of

A 10-year maturity, 9% coupon bond has a par value of $1,000 and semi-annual coupon payments. You purchase the bond at face value when it is issued. You hold the bond for 6 months, collect the first coupon payment, and then sell the bond immediately. If the bond's yield-to-maturity is 5.2% when you sell it, what is your percentage return over this 6-month holding period? Enter your answer as a decimal and show 4 decimal places. For example, if your answer is 6.25%, enter.0625. Do NOT annualize your final

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!