What is the new yield to maturity on the bond

Reference no: EM13520020

Question 1

You buy a 6.6% coupon, 7-year maturity bond for $964. A year later, the bond price is $1,104. Assume coupons are paid once a year and the face value is $1,000.

a. What is the new yield to maturity on the bond (one year from now)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Yield to maturity %

b. What is your bond's rate of return over the year? (Round your answer to 2 decimal places.)
Rate of return- %

Reference no: EM13520020

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