Question: You buy a 2 0 - year bond with a coupon rate of 7 . 8 % that has a yield to maturity of 9

You buy a 20-year bond with a coupon rate of 7.8% that has a yield to maturity of 9.9%.(Assume a face value of $1,000 and semiannual
coupon payments.) Six months later, the yield to maturity is 10.9%. What is your return over the 6 months?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount
should be indicated by a minus sign.
Rate of return
 You buy a 20-year bond with a coupon rate of 7.8%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!