Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:You bought a newly issued 10-year, $1,000 par value,
5.50% coupon bond (with semiannual coupon payments)
on May 1, 2023. You decided to check the value and yields
on the bond annually, so that you can keep track of your
wealth. Your first check was to be done on May 1, 2024.
On April 15, 2024, the yield to maturity for the bond
changed to 5.20%.
For your one year anniversary of owning the bond,
calculate the bond's total yield for the first year of
ownership. Report the percentage to two decimal places
(3.126% = 3.13).
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