What did you pay for the bond

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At the beginning of the year, you bought a $1000 par value corporate bind with an annual coupon rate of 9 percent and a maturity date of 16 years. When you bought the bond, it had an expected yield to maturity of 11 percent. Today the bond sells for $1000.

a. What did you pay for the bond?

b. If you sold the bond at the end of the year, what would be your one-period return on the investment? Assume that you did not receive any interest payment during the holding period

Reference no: EM133118880

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