Bond Prices and Interest Rate Changes A 6.75 percent coupon bond with 10 years left to maturity is priced to offer a 6.5 percent yield to maturity.You believe that in one year,the yield to maturity will be 6.65 percent.If this occurs,what would be the total return of the bond in percent? (Assume semi-annual interest payments and $1,000 par value.)
A) 5.5 percent
B) 5.6 percent
C) 6.6 percent
D) 6.7 percent
Correct Answer:
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