Question: Corp issues 5% coupon bonds for par value today. These bonds make semi-annual coupon payments and mature in 15 years. You buy one of these
Corp issues 5% coupon bonds for par value today. These bonds make semi-annual coupon payments and mature in 15 years. You buy one of these bonds for exactly $1,000. You hold the bond for 6 months, collect the coupon payment, and then sell the bond immediately therafter. If the bond's yield-to-maturity is 6.4% when you sell it, what is your percentage return (not annualized) over this 6-month holding period?
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