Bond prices and interest rate changes lg5 a 78 percent


Bond Prices and Interest Rate Changes (LG5) A 7.8 percent coupon bond with 18 years left to maturity is priced to offer a 6.40 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.0 percent.

What would be the total return of the bond in dollars? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Total return $

What would be the total return of the bond in percentage? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Total return %

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Financial Management: Bond prices and interest rate changes lg5 a 78 percent
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