You purchased an annual-interest coupon bond one year ago with six years remaining to maturity...
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Finance
You purchased an annual-interest coupon bond one year ago with six years remaining to maturity at the time of purchase. The coupon interest rate is 10%, and par value is $1,000. At the time you purchased the bond, the yield to maturity was 8%. If you sold the bond after receiving the first interest payment and the bond's yield to maturity had changed to 7%, your annual total rate of return on holding the bond for that year would have been
Multiple Choice
a. 7.00%.
b. None of the options are correct.
c. 9.95%.
d. 8.00%.
e. 11.95%.
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