Bendersick Cumberbad purchased a bond 5 years ago for $945.85. At the time of purchase, it had a coupon rate of 6% with semi-annual payments and 15 years left to maturity. 

Mr. Cumberbad is selling the bond today, and the market rate for this bond has fallen to 5.5%. 

What is his realized return on this bondBendersick Cumberbad purchased a bond 5 years ago for $945.85. 

At the time of purchase, it had a coupon rate of 6% with semi-annual payments and 15 years left to maturity. 

Mr. Cumberbad is selling the bond today, and the market rate for this bond has fallen to 5.5%. 

What is his realized return on this bond?

Answer rating: 100% (QA)

To calculate Bendersick Cumberbads realized return on the bond we need to find the current market pr... View the full answer