(SOLVED) You buy an 8 coupon paid annually 10 year maturity bond


Question Description:

$19

You buy an 8% coupon, paid annually, 10-year maturity bond for $980. A year later, the bond price is $1,100.
a. What is the yield to maturity on the bond today? What is it in one year?
b. What is your rate of return over the year?

Answer

$19