What will be the rate of return on the bond


Problem

A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $108 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year is: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.

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Finance Basics: What will be the rate of return on the bond
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