What price did you pay for the bond if you sell the bond


At the beginning of the year, you bought a $1,000 par value bond with a 6% coupon, payable annually, and a 10-year maturity. When you bought the bond, it had a expected yield to maturity of 8% per annum, compounded annually. Today the bond sells for $1,060. What price did you pay for the bond? If you sell the bond today (in addition to receiving the coupon), what would be your one-period return on the investment?

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Financial Management: What price did you pay for the bond if you sell the bond
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