Bond that pays coupons annually is issued with a coupon rate

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A bond that pays coupons annually is issued with a coupon rate of 5.3%, maturity of 30 years, and a yield to maturity of 8.3%. What rate of return will be earned by an investor who purchases the bond and holds it for 1 year if the bond’s yield to maturity at the end of the year is 9.3%? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Rate of return %

Reference no: EM13835074

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