An investor buys a bond with a $100 par value and a 5% coupon rate for...

An investor buys a bond with a $100 par value and a 5% coupon rate for $97. The bond pays interest semiannually. Exactly one year later, just after receiving the second coupon payment, the investor sells the bond for $96. What was the investor’s rate of return over the year from owning the bond?

How do you get the answer using a financial calculator?

Expert Solution

jeff jeffy answered 1 year ago

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