You purchased a bond last year that pays an 8% annual coupon with a face value...

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Finance

You purchased a bond last year that pays an 8% annual couponwith a face value of $1,000. At the time of purchase, the bond hada yield to maturity of 10% and had 10 years until maturity. Today,the bond trades at a yield to maturity of 9%. What was thepercentage return of this investment over the last year? (20pts)

a.

8.00%

b.

9.00%

c.

15.21%

d.

16.30%

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Transcribed Image Text

You purchased a bond last year that pays an 8% annual couponwith a face value of $1,000. At the time of purchase, the bond hada yield to maturity of 10% and had 10 years until maturity. Today,the bond trades at a yield to maturity of 9%. What was thepercentage return of this investment over the last year? (20pts)a.8.00%b.9.00%c.15.21%d.16.30%

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