One year ago today you bought a 6% coupon bond with a face value of €100 and 5 years to maturity for a price of €102.47. The bond pays interest annually.

In the meantime the yield to maturity for the bond has changed and is now 5%.
If you sell the bond today what would have been your rate of return over the past year?

Answer rating: 100% (QA)

To calculate the rate of return on a bond investment over the past year we can use the following for... View the full answer