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You buy an 8 coupon 10-year maturity bond for 980 a year

You buy an 8% coupon, 10-year maturity bond for $980. A year later, the bond price is $1,200.

a. What is the new yield to maturity on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Yield to maturity %

b. What is your rate of return over the year? (Round your answer to 2 decimal places.)

Rate of return %

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Finance Basics: You buy an 8 coupon 10-year maturity bond for 980 a year

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Finance Basics: You buy an 8 coupon 10-year maturity bond for 980 a year

Reference No:- TGS02199182

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