Question

Asked Sep 19, 2019

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You buy a 20-year bond with a coupon rate of 7.6% that has a yield to maturity of 9.5%. (Assume a face value of $1,000 and semiannual coupon payments.) Six months later, the yield to maturity is 10.5%. What is your return over the 6 months?

Step 1

**Calculation of Return over the 6 months:**

The return over the 6 months is -**3.84%**.

**Excel Spreadsheet:**

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