You purchased a 5% coupon 10-year bond six years ago for $2,079.82. The bond with a par value of $2,000 paid semi-annual coupons. You held the bond for six years and liquidate your position in the bond today. One day after you purchased the bond, interest rates rose to 5 percent and remained unchanged since then. 

Calculate the (annual) rate of return realized on your investment

Answer rating: 100% (QA)

SOLUTION To calculate the annual rate of return realized on your investment in the bond we need to c... View the full answer