You buy an 7 coupon 9-year maturity bond for 970 a year, Ask an Expert

Finance

You buy a(n) 7% coupon, 9-year maturity bond for $970. A year later, the bond price is $1,120. Assume coupons are paid once a year and the face value is $1,000.

a. What is the new yield to maturity on the bond (one year from now)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Yield to maturity %

b. What is your bond's rate of return over the year? (Round your answer to 2 decimal places.)

Rate of return %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91590276

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