You Purchased an Annual Interest Coupon Bond One Year Ago

question 57

Multiple Choice

You purchased an annual interest coupon bond one year ago that had nine years remaining to maturity at that time.The coupon interest rate was 10%, and the par value was $1,000.At the time you purchased the bond, the yield to maturity was 8%.If you sold the bond after receiving the first interest payment and the yield to maturity continued to be 8%, your annual total rate of return on holding the bond for that year would have been

• A)8.00%.
• B)7.82%.
• C)7.00%.
• D)11.95%.

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