1. A 14-year, $1000 face value bond makes annual payments and has a coupon rate of 9.6 percent.If the current yield on the bond is 10.6 percent, what is the bond’s price? Answer: 905.66

2. Suppose that a year from now the bond sells at a yield to maturity of 9.1 percent. What is the price of the bond? Enter your answer rounded to two decimal places. 1,037.24

3. What is your rate of return if you purchase the bond for $905.66, hold it for a year, and then sell it for $1,037.24? Enter your answer as a percentage rounded to 2 decimal places. Do not enter the percentage sign.

Answer rating: 100% (QA)

1 A 14year 1000 face value bond makes annual payments and has a coupon rate of 96 perce... View the full answer