Question: Kossan bought a RM1000 par value bond when it has 10 years maturity left at a price of RM960. The bond pays a 6% annual

Kossan bought a RM1000 par value bond when it has 10 years maturity left at a price of RM960. The bond pays a 6% annual coupon. Four years later, he sold the bond at the price of RM1030.

aHow much is the rate of return that he earned on this bond over his 4-year investment period?

bIf Kossan does not sell the bond and left it to mature, how much is the rate of return that he earned on this bond?

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