What is the price of the bond

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1. A 6-year, $1000 face value bond makes annual payments and has a coupon rate of 11.2 percent. If the current yield on the bond is 10.7 percent, what is the bond's price? Answer: 1,046.73

2. Suppose that a year from now the bond sells at a yield to maturity of 11.2 percent. What is the price of the bond? Enter your answer rounded to two decimal places. Answer : 1000

3.What is your rate of return if you purchase the bond for $1,046.73, hold it for a year, and then sell it for $1,000? Enter your answer as percentage rounded to decimal places. Do not enter the percentage sign.

Answer question 3 please

Reference no: EM132783006

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