How much did you pay for the bond

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Three years ago, YQR Inc. issued a bond with a 10% coupon rate, semi-annual coupon payments, $1,000 face value and 15-years until maturity. You bought this bond one year ago when the yield-to-maturity was 12%.

(a) How much did you pay for the bond?

(b) If the yield to maturity is 10% now, what is the value of the bond?

(c) If you sold the bond now (i.e. after having owned it for one year), what would be your capital gain/loss yield?

Reference no: EM131914533

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