Question: Last year, you bought a bond with face value $1000, maturity 20 years, coupon rate of 5.5% per year payable semi-annually and yield to maturity

Last year, you bought a bond with face value $1000, maturity 20 years, coupon rate of 5.5% per year payable semi-annually and yield to maturity of 7% per year. Currently the bond sells for $900. How much would be your total yield if you sell this bond today?

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Face value of the bond 1000 Maturity of the bond 20 years Coupon rate 55 per year semiannua... View full answer

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