Your grandmother currently owns bonds that will mature in 7 years. The face value of these bonds is $1,000 and their coupon rate is 8%, with interest paid annually. Currently the yield to maturity is 12%. She purchased these bonds a year ago at a price of $1,000 and has just received her annual coupon interest payment. 

What is her return on the holding period of her bonds? (Use annual compounding.) Show all work, not in excel

Answer rating: 100% (QA)

SOLUTION The bond has a face value of 1000 and a coupon rate of 8 Therefore the annual interest paym... View the full answer