Question: You bought a 1 0 - year, 5 % coupon bond which pays interest rate semi - annually. If market yields on the bond are

You bought a 10-year, 5% coupon bond which pays interest rate semi-annually. If market yields
on the bond are 8%. What is the price of the bond? Assume FV is 100.
If you decide to sell the bonds after 6 months at a price of $85. What is the return you obtained?
What if you sell two years later at $87.

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