Homer Simpson bought a 20 year to maturity bond from Doh! a year ago for $1100. This bond has a par value of $1,000 with a coupon rate of 7.5% and makes annual coupon payments. Today Homer needs money to buy pork rinds and wants to sell the bond, and the bond's yield to maturity is 6%. 

What return would Homer earn by selling the bond today?

Answer rating: 100% (QA)

To find out what return Homer would earn by selling the bond today we need to first determine t... View the full answer