ANna G.

asked • 11/04/21

You spend $1,363 for a bond with a $1,000 face value and a 6% coupon. After one year, though, you decide to sell it. You’re pleased to find that the value of the bon….

You spend $1,363 for a bond with a $1,000 face value and a 6% coupon. After one year, though, you decide to sell it. You’re pleased to find that the value of the bond is now $1,461, so you sell for that price.

a. Calculate your one-year rate-of-return for the bond.

b. Calculate the bond’s current yield.

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