Suppose you purchase a​ 10-year bond with 6.4% annual coupons. You hold the bond for four​ years, and sell it immediately after receiving the fourth coupon. If the​ bond's yield to maturity was 5.3% when you purchased and sold the​ bond,   what is the annual rate of return of your​ investment? (Round to 2 decimal places)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 9P
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Suppose you purchase a​ 10-year bond with 6.4% annual coupons. You hold the bond for four​ years, and sell it immediately after receiving the fourth coupon. If the​ bond's yield to maturity was 5.3% when you purchased and sold the​ bond,

 

what is the annual rate of return of your​ investment? (Round to 2 decimal places) 

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