Last year Janet purchased a $1,000 face value corporate bond with an 8% annual coupon rate and a 30-year maturity. At the time of the purchase, it had an expected yield to maturity of 10.26%. If Janet sold the bond today for $1,142.91, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.

Last year Janet purchased a $1,000 face value corporate bond with an 8% annual coupon rate and a 30-year maturity. At the time of the purchase, it had an expected yield to maturity of 10.26%. If Janet sold the bond today for $1,142.91, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 8P

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