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What is the return of your investment

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You buy a 5-year corporate bond ( principal is $1000, sold at par, coupón rate, 8%), right at the time of its inception (issuance), and you keep it for three years. If at the time of selling it, the discount rate is 12%:

1) What is the return of your investment?

2) What is the YTM (yield to maturity) for the new investors?

3) What is the coupon o current yield at the time of sale?

4) Explain why the coupon yield and the YTM are different

Reference no: EM132516440

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