You purchased a 6% annual coupon bond at face value and sold it one year later for $1,015.16.What was your rate of return on this investment if the face value at maturity was $1,000?

Name: You purchased a 6% annual coupon bond at face value and sold it one year later for $1,015.16.What was your rate of return on this investment if the face value at maturity was $1,000?
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Question

Quizplus · Accepted Answer

Rate of return = [$1,015.16 + (0.06 × $1,000) − $1,000] / $1,000 = 0.0752, or 7.52%

You Purchased a 6% Annual Coupon Bond at Face Value