Six months ago you purchased a bond with 14 years remaining until maturity, a coupon rate of
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Question:
Six months ago you purchased a bond with 14 years remaining until maturity, a coupon rate of 5.00% and a yeild of maturity of 4.00% at the time of purchase. This morning you received a coupon, and then sold the bond at a yield to maturity of 4.25%. What is your rate of return from 6 months ago today?
The rate of return should be expressed as an interest rate, not a dollar amount, and do not annualize the answer.
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