Question: You purchase a 8 - year bond at $ 97 per $ 100 par value that pays a 7.3 % coupon per annum . Further

You purchase a 8 - year bond at $ 97 per $ 100 par value that pays a 7.3 % coupon per annum . Further assume that bond pays coupon semi - annually , and coupons can be reinvested at 3.5 % semi - annually for first 6 years . The yield to maturity of a 2 - years comparable bond after 6 years is 5 % . If you hold the bond for 6 years , what will be your total return ? Please write the answer in four decimal places and NOT PERcentage.

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