Exhibit 6-1
Suppose that an investor bought a bond last year for $980. The bond pays a 7% annual coupon and has a face value of $1,000. Today, the same bond is selling for $960.
-Refer to Exhibit 6-1.If the investor sells the bond this morning,what is the total percentage return of the investment?

Question

Quizplus · Accepted Answer

r =($70 + ($960-$980))/$980 = 5.10%

Exhibit 6-1 Suppose That an Investor Bought a Bond Last Year for Year