New yield to maturity on the bond
You buy a(n) 7.8% coupon, 7-year maturity bond for $982. A year later, the bond price is $1,152.
a) What is the new yield to maturity on the bond?
b) What is your rate of return over the year?
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What is the new yield to maturity on the bond? What is your rate of return over the year?
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