(SOLVED) A bond that pays coupons annually is issued with a


Question Description:

$19

A bond that pays coupons annually is issued with a coupon rate of 4%, maturity of 30 years, and a yield to maturity of 7%. What rate of return will be earned by an investor who purchases the bond and holds it for 1 year if the bond’s yield to maturity at the end of the year is 8%?

Answer

$19