A bond has a face value of $1,000, a coupon payable at 6% annually, a maturity of 38 years, and a 9% yield to maturity. If the bond's yield to maturity is 12% at the end of the year, how much return would the investor get if he bought the bond for $679.28 and held it for 1 year? 

(Do not round off intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places. The negative amount should be indicated with a minus sign.)

Answer rating: 100% (QA)

We can first calculate the coupon payment on the bond which is 6 of the face ... View the full answer