Last year you purchased a $1,000 face value bond at a 10% discount. This year (one-year later) you sell the bond after the YTM shifts to 4.80%. The bond initially had a 6-year maturity and a coupon rate of 2.40% paid annually. What is your rate of return?

Answer rating: 100% (QA)

Given information Face value of the bond 1000 Discounted purchase price 10 discount which me... View the full answer