Problema 660 percent coupon bond with 15 years left to, Ask an Expert

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Problem:

A 6.60 percent coupon bond with 15 years left to maturity is priced to offer a 5.3 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.0 percent.

Required:

Question 1: What would be the total return of the bond in dollars?

Question 2: What would be the total return of the bond in percent?

Explain comprehensively and provide step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147223

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