Three years ago, you bought a 5 year, 9% bond (par value = $1,000) for $816.67. Today (after the 6th interest payment), you sold the bond for $1058.33. What is your annual rate of return for the three year period? All coupon payments are semi-annual.

Answer rating: 100% (QA)

SOLUTION To calculate the annual rate of return for the threeyear period we need to consider the initial investment the final sale price and the coupo... View the full answer