Determine what is the bonds rate of return over the year

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Reference no: EM13333649

You buy a(n) 5.6% coupon, 8-year maturity bond for $949. A year later, the bond price is $1,064. Assume coupons are paid once a year and the face value is $1,000.

What is the new yield to maturity on the bond (one year from now)?

What is your bond's rate of return over the year?

Reference no: EM13333649

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