Calculate annualized rate of return for bond investor


Discussion:

You purchase a $1000 face value bond with 6 years to maturity for $850.

One year later, you sell the bond to a bond investor for $714. Suppsoe that the bond investor holds the bond to maturity. Calculate the annualized rate of return that the bond investor will receive.

Enter your answer into blackboard as a percentage rounding to two decimal places. For example if your answer is 1.25 percent then you should enter "1.25".

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Macroeconomics: Calculate annualized rate of return for bond investor
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