You buy a 20-year bond with a coupon rate of 10.0% that has a yield to maturity of 11.0%. (Assume a face value of $1,000 and semiannual coupon payments.) Six months later, the yield to maturity is 12.0%. What is your return over the 6 months? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.) Answer is complete but not entirely correct. Rate of return 2.10
You buy a 20-year bond with a coupon rate of 10.0% that has a yield to maturity of 11.0%. (Assume a face value of $1,000 and semiannual coupon payments.) Six months later, the yield to maturity is 12.0%. What is your return over the 6 months? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.) Answer is complete but not entirely correct. Rate of return 2.10
Chapter14: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 6DTM
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