An investor buys a 5-year bond with a coupon rate of 6.5% at a price that...

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Finance

An investor buys a 5-year bond with a coupon rate of 6.5% at aprice that reflects a yield to maturity of 10.9%. Interest is paidsemiannually. Exactly one year later, after receiving the secondcoupon payment, the investor sells the bond for 97% of par value.What was the investor’s rate of return on the bond investment forthe year? Enter your answer as a decimal out to four decimalplaces. As an example, you would enter 1.146% as 0.0146. If thereturn was negative, use a leading dash when entering youranswer.

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An investor buys a 5-year bond with a coupon rate of 6.5% at aprice that reflects a yield to maturity of 10.9%. Interest is paidsemiannually. Exactly one year later, after receiving the secondcoupon payment, the investor sells the bond for 97% of par value.What was the investor’s rate of return on the bond investment forthe year? Enter your answer as a decimal out to four decimalplaces. As an example, you would enter 1.146% as 0.0146. If thereturn was negative, use a leading dash when entering youranswer.