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You buy a bond for $970 that has a coupon rate of 7.00% and a maturity...

You buy a bond for $970 that has a coupon rate of 7.00% and a maturity of 9-years. A year later, the bond price is $1,120. (Assume a face value of $1,000 and annual coupon payments.)

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

b. What is your rate of return over the year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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jeff jeffy answered 2 years ago
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