If a coupon bond that is going to mature in two years is selling at par. Suppose its coupon rate is 10%, the yield to maturity at the begging of the year is 10%, and the yield to maturity at the end of the year is 5%. Please calculate the return of the coupon bond of this year.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 3P: Current Yield for Annual Payments Heath Food Corporations bonds have 7 years remaining to maturity....
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D4) About rate of return For a consol that pays $100 annually, if the yield to maturity at the beginning of the year is 10%, and the yield to maturity at the end of the year is 5%, please calculate the return of the consol of this year. If a coupon bond that is going to mature in two years is selling at par. Suppose its coupon rate is 10%, the yield to maturity at the begging of the year is 10%, and the yield to maturity at the end of the year is 5%. Please calculate the return of the coupon bond of this year.
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