Question: please show your work so I may see where I went wrong. Im not using Excel, using BA II Plus professional calculator You buy a

please show your work so I may see where I went wrong. Im not using Excel, using BA II Plus professional calculator

You buy a bond issued by Terlingua Oil & Gas Exploration Corp. The coupon rate is 9%, and coupons are paid semi-annually. Par of your bond is $10,000. The bond matures in 10 years. Your price today on the bond is $9,500. In six months, the YTM on the bond has risen by 1%. You collect the coupon payment and sell the bond. What is your effective annual rate of return? Hint: see Example 7 in the Lecture, 10.04% -1.06% Correct Answer -2.11% 1.00% You Answered 9.80%

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